Correlation Between ProShares Investment and ProShares
Can any of the company-specific risk be diversified away by investing in both ProShares Investment 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 ProShares Investment and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Investment GradeInterest and ProShares SP MidCap, you can compare the effects of market volatilities on ProShares Investment 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 ProShares Investment with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Investment and ProShares.
Diversification Opportunities for ProShares Investment and ProShares
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and ProShares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Investment GradeInte and ProShares SP MidCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP MidCap and ProShares Investment 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 Investment GradeInterest 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 MidCap has no effect on the direction of ProShares Investment i.e., ProShares Investment and ProShares go up and down completely randomly.
Pair Corralation between ProShares Investment and ProShares
Given the investment horizon of 90 days ProShares Investment GradeInterest is expected to generate 0.32 times more return on investment than ProShares. However, ProShares Investment GradeInterest is 3.15 times less risky than ProShares. It trades about -0.14 of its potential returns per unit of risk. ProShares SP MidCap is currently generating about -0.06 per unit of risk. If you would invest 7,758 in ProShares Investment GradeInterest on December 11, 2024 and sell it today you would lose (61.00) from holding ProShares Investment GradeInterest or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Investment GradeInte vs. ProShares SP MidCap
Performance |
| Timeline |
| ProShares Investment |
| ProShares SP MidCap |
ProShares Investment and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Investment and ProShares
The main advantage of trading using opposite ProShares Investment and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Investment 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.| ProShares Investment vs. ProShares High YieldInterest | ProShares Investment vs. iShares Interest Rate | ProShares Investment vs. WisdomTree Interest Rate | ProShares Investment vs. iShares Interest Rate |
| ProShares vs. ProShares Russell 2000 | ProShares vs. ProShares MSCI EAFE | ProShares vs. ProShares MSCI Emerging | ProShares vs. ProShares MSCI Europe |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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