Correlation Between Tema ETF and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both Tema ETF and ProShares Trust 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 Tema ETF and ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema ETF Trust and ProShares Trust, you can compare the effects of market volatilities on Tema ETF and ProShares Trust 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 Tema ETF with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and ProShares Trust.
Diversification Opportunities for Tema ETF and ProShares Trust
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tema and ProShares is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust and Tema ETF 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 Tema ETF Trust are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of Tema ETF i.e., Tema ETF and ProShares Trust go up and down completely randomly.
Pair Corralation between Tema ETF and ProShares Trust
Considering the 90-day investment horizon Tema ETF Trust is expected to under-perform the ProShares Trust. But the etf apears to be less risky and, when comparing its historical volatility, Tema ETF Trust is 4.0 times less risky than ProShares Trust. The etf trades about -0.03 of its potential returns per unit of risk. The ProShares Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,644 in ProShares Trust on August 26, 2024 and sell it today you would earn a total of 2,948 from holding ProShares Trust or generate 80.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.81% |
| Values | Daily Returns |
Tema ETF Trust vs. ProShares Trust
Performance |
| Timeline |
| Tema ETF Trust |
| ProShares Trust |
Tema ETF and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and ProShares Trust
The main advantage of trading using opposite Tema ETF and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF position performs unexpectedly, ProShares Trust 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 Trust will offset losses from the drop in ProShares Trust's long position.| Tema ETF vs. Smith Nephew SNATS | Tema ETF vs. Fresenius Medical Care | Tema ETF vs. Fomento Economico Mexicano | Tema ETF vs. The Cooper Companies, |
| ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. ProShares Trust | ProShares Trust vs. Grayscale Ethereum Trust | ProShares Trust 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |