Correlation Between IShares Global and ProShares Global
Can any of the company-specific risk be diversified away by investing in both IShares Global and ProShares Global 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 IShares Global and ProShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Clean and ProShares Global Listed, you can compare the effects of market volatilities on IShares Global and ProShares Global 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 IShares Global with a short position of ProShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and ProShares Global.
Diversification Opportunities for IShares Global and ProShares Global
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and ProShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Clean and ProShares Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Global Listed and IShares Global 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 iShares Global Clean are associated (or correlated) with ProShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Global Listed has no effect on the direction of IShares Global i.e., IShares Global and ProShares Global go up and down completely randomly.
Pair Corralation between IShares Global and ProShares Global
Given the investment horizon of 90 days iShares Global Clean is expected to under-perform the ProShares Global. In addition to that, IShares Global is 1.79 times more volatile than ProShares Global Listed. It trades about -0.06 of its total potential returns per unit of risk. ProShares Global Listed is currently generating about 0.07 per unit of volatility. If you would invest 2,187 in ProShares Global Listed on November 2, 2024 and sell it today you would earn a total of 693.00 from holding ProShares Global Listed or generate 31.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Clean vs. ProShares Global Listed
Performance |
| Timeline |
| iShares Global Clean |
| ProShares Global Listed |
IShares Global and ProShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and ProShares Global
The main advantage of trading using opposite IShares Global and ProShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, ProShares Global 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 Global will offset losses from the drop in ProShares Global's long position.| IShares Global vs. Invesco Solar ETF | IShares Global vs. First Trust NASDAQ | IShares Global vs. Invesco WilderHill Clean | IShares Global vs. Global X Lithium |
| ProShares Global vs. Invesco Global Listed | ProShares Global vs. ProShares Merger ETF | ProShares Global vs. VanEck BDC Income | ProShares Global vs. ProShares Hedge Replication |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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