Correlation Between ProShares Merger and AltShares Trust
Can any of the company-specific risk be diversified away by investing in both ProShares Merger and AltShares 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 ProShares Merger and AltShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Merger ETF and AltShares Trust , you can compare the effects of market volatilities on ProShares Merger and AltShares 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 ProShares Merger with a short position of AltShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Merger and AltShares Trust.
Diversification Opportunities for ProShares Merger and AltShares Trust
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and AltShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Merger ETF and AltShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AltShares Trust and ProShares Merger 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 Merger ETF are associated (or correlated) with AltShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AltShares Trust has no effect on the direction of ProShares Merger i.e., ProShares Merger and AltShares Trust go up and down completely randomly.
Pair Corralation between ProShares Merger and AltShares Trust
Given the investment horizon of 90 days ProShares Merger ETF is expected to generate 1.06 times more return on investment than AltShares Trust. However, ProShares Merger is 1.06 times more volatile than AltShares Trust . It trades about 0.17 of its potential returns per unit of risk. AltShares Trust is currently generating about 0.13 per unit of risk. If you would invest 3,998 in ProShares Merger ETF on September 2, 2024 and sell it today you would earn a total of 199.00 from holding ProShares Merger ETF or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Merger ETF vs. AltShares Trust
Performance |
| Timeline |
| ProShares Merger ETF |
| AltShares Trust |
ProShares Merger and AltShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Merger and AltShares Trust
The main advantage of trading using opposite ProShares Merger and AltShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Merger position performs unexpectedly, AltShares 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 AltShares Trust will offset losses from the drop in AltShares Trust's long position.| ProShares Merger vs. ProShares Hedge Replication | ProShares Merger vs. IQ Merger Arbitrage | ProShares Merger vs. ProShares Global Listed | ProShares Merger vs. ProShares Investment GradeInterest |
| AltShares Trust vs. First Trust Managed | AltShares Trust vs. Franklin Liberty Systematic | AltShares Trust vs. Overlay Shares Foreign | AltShares Trust vs. First Trust LongShort |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |