Correlation Between ProShares Trust and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Fidelity Advantage at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ProShares Trust and Fidelity Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Fidelity Advantage Ether, you can compare the effects of market volatilities on ProShares Trust and Fidelity Advantage and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ProShares Trust with a short position of Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Fidelity Advantage.
Diversification Opportunities for ProShares Trust and Fidelity Advantage
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ProShares and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Fidelity Advantage Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage Ether and ProShares Trust is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ProShares Trust are associated (or correlated) with Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage Ether has no effect on the direction of ProShares Trust i.e., ProShares Trust and Fidelity Advantage go up and down completely randomly.
Pair Corralation between ProShares Trust and Fidelity Advantage
Given the investment horizon of 90 days ProShares Trust is expected to generate 1.03 times more return on investment than Fidelity Advantage. However, ProShares Trust is 1.03 times more volatile than Fidelity Advantage Ether. It trades about 0.28 of its potential returns per unit of risk. Fidelity Advantage Ether is currently generating about 0.28 per unit of risk. If you would invest 5,285 in ProShares Trust on August 30, 2024 and sell it today you would earn a total of 1,994 from holding ProShares Trust or generate 37.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
ProShares Trust vs. Fidelity Advantage Ether
Performance |
| Timeline |
| ProShares Trust |
| Fidelity Advantage Ether |
ProShares Trust and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Fidelity Advantage
The main advantage of trading using opposite ProShares Trust and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Fidelity Advantage can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity Advantage will offset losses from the drop in Fidelity Advantage's long position.| ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. ProShares Trust | ProShares Trust vs. Grayscale Ethereum Trust | ProShares Trust vs. ProShares Trust |
| Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. iShares Ethereum Trust | Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. Grayscale Ethereum Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |