Correlation Between ProShares Trust and IShares Ethereum
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and IShares 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 IShares 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 iShares Ethereum Trust, you can compare the effects of market volatilities on ProShares Trust and IShares 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 IShares Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and IShares Ethereum.
Diversification Opportunities for ProShares Trust and IShares Ethereum
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and IShares is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and iShares Ethereum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Ethereum Trust 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 IShares Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Ethereum Trust has no effect on the direction of ProShares Trust i.e., ProShares Trust and IShares Ethereum go up and down completely randomly.
Pair Corralation between ProShares Trust and IShares Ethereum
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the IShares Ethereum. In addition to that, ProShares Trust is 2.0 times more volatile than iShares Ethereum Trust. It trades about -0.17 of its total potential returns per unit of risk. iShares Ethereum Trust is currently generating about -0.14 per unit of volatility. If you would invest 2,484 in iShares Ethereum Trust on November 9, 2024 and sell it today you would lose (423.00) from holding iShares Ethereum Trust or give up 17.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. iShares Ethereum Trust
Performance |
| Timeline |
| ProShares Trust |
| iShares Ethereum Trust |
ProShares Trust and IShares Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and IShares Ethereum
The main advantage of trading using opposite ProShares Trust and IShares Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, IShares 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 IShares Ethereum will offset losses from the drop in IShares Ethereum's long position.| ProShares Trust vs. ProShares Trust | ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. ProShares Trust | ProShares Trust vs. Grayscale Ethereum Trust |
| IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. Grayscale Ethereum Trust | IShares Ethereum vs. ProShares 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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