Correlation Between ProShares Merger and ProShares Global
Can any of the company-specific risk be diversified away by investing in both ProShares Merger 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 ProShares Merger and ProShares Global 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 ProShares Global Listed, you can compare the effects of market volatilities on ProShares Merger 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 ProShares Merger with a short position of ProShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Merger and ProShares Global.
Diversification Opportunities for ProShares Merger and ProShares Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and ProShares is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Merger ETF 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 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 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 ProShares Merger i.e., ProShares Merger and ProShares Global go up and down completely randomly.
Pair Corralation between ProShares Merger and ProShares Global
Given the investment horizon of 90 days ProShares Merger ETF is expected to under-perform the ProShares Global. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Merger ETF is 2.47 times less risky than ProShares Global. The etf trades about -0.05 of its potential returns per unit of risk. The ProShares Global Listed is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,757 in ProShares Global Listed on September 4, 2024 and sell it today you would earn a total of 136.00 from holding ProShares Global Listed or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Merger ETF vs. ProShares Global Listed
Performance |
| Timeline |
| ProShares Merger ETF |
| ProShares Global Listed |
ProShares Merger and ProShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Merger and ProShares Global
The main advantage of trading using opposite ProShares Merger and ProShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Merger 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.| ProShares Merger vs. First Trust Managed | ProShares Merger vs. Franklin Liberty Systematic | ProShares Merger vs. Overlay Shares Foreign | ProShares Merger vs. First Trust LongShort |
| ProShares Global vs. Managed Account Series | ProShares Global vs. Fidelity Sai International | ProShares Global vs. Schwab Strategic Trust | ProShares Global vs. Inpex Corp ADR |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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