Correlation Between Fidelity MSCI and ProShares
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and ProShares 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 Fidelity MSCI and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity MSCI Information and ProShares SP Kensho, you can compare the effects of market volatilities on Fidelity MSCI and ProShares 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 Fidelity MSCI with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and ProShares.
Diversification Opportunities for Fidelity MSCI and ProShares
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and ProShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Information and ProShares SP Kensho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP Kensho and Fidelity MSCI 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 Fidelity MSCI Information are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP Kensho has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and ProShares go up and down completely randomly.
Pair Corralation between Fidelity MSCI and ProShares
Given the investment horizon of 90 days Fidelity MSCI Information is expected to generate 0.94 times more return on investment than ProShares. However, Fidelity MSCI Information is 1.07 times less risky than ProShares. It trades about 0.09 of its potential returns per unit of risk. ProShares SP Kensho is currently generating about 0.07 per unit of risk. If you would invest 15,929 in Fidelity MSCI Information on September 1, 2024 and sell it today you would earn a total of 2,598 from holding Fidelity MSCI Information or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity MSCI Information vs. ProShares SP Kensho
Performance |
| Timeline |
| Fidelity MSCI Information |
| ProShares SP Kensho |
Fidelity MSCI and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and ProShares
The main advantage of trading using opposite Fidelity MSCI and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Fidelity MSCI vs. Fidelity MSCI Health | Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. Fidelity MSCI Financials | Fidelity MSCI vs. Fidelity MSCI Energy |
| ProShares vs. Nexalin Technology | ProShares vs. Kilroy Realty Corp | ProShares vs. Highwoods Properties | ProShares vs. Karat Packaging |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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