Correlation Between ProShares Trust and Grayscale Ethereum
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Grayscale Ethereum 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 Grayscale Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Grayscale Ethereum Mini, you can compare the effects of market volatilities on ProShares Trust and Grayscale Ethereum 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 Grayscale Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Grayscale Ethereum.
Diversification Opportunities for ProShares Trust and Grayscale Ethereum
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Grayscale is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Grayscale Ethereum Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Ethereum Mini 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 Grayscale Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Ethereum Mini has no effect on the direction of ProShares Trust i.e., ProShares Trust and Grayscale Ethereum go up and down completely randomly.
Pair Corralation between ProShares Trust and Grayscale Ethereum
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the Grayscale Ethereum. In addition to that, ProShares Trust is 1.92 times more volatile than Grayscale Ethereum Mini. It trades about -0.3 of its total potential returns per unit of risk. Grayscale Ethereum Mini is currently generating about 0.28 per unit of volatility. If you would invest 2,470 in Grayscale Ethereum Mini on August 30, 2024 and sell it today you would earn a total of 958.00 from holding Grayscale Ethereum Mini or generate 38.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Grayscale Ethereum Mini
Performance |
| Timeline |
| ProShares Trust |
| Grayscale Ethereum Mini |
ProShares Trust and Grayscale Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Grayscale Ethereum
The main advantage of trading using opposite ProShares Trust and Grayscale Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Grayscale Ethereum 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 Grayscale Ethereum will offset losses from the drop in Grayscale Ethereum's long position.| ProShares Trust vs. ProShares Trust | ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. Grayscale Ethereum Trust | ProShares Trust vs. ProShares Trust |
| Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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