Correlation Between OShares Global and ProShares Online
Can any of the company-specific risk be diversified away by investing in both OShares Global and ProShares Online 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 OShares Global and ProShares Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OShares Global Internet and ProShares Online Retail, you can compare the effects of market volatilities on OShares Global and ProShares Online 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 OShares Global with a short position of ProShares Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of OShares Global and ProShares Online.
Diversification Opportunities for OShares Global and ProShares Online
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OShares and ProShares is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding OShares Global Internet and ProShares Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Online Retail and OShares 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 OShares Global Internet are associated (or correlated) with ProShares Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Online Retail has no effect on the direction of OShares Global i.e., OShares Global and ProShares Online go up and down completely randomly.
Pair Corralation between OShares Global and ProShares Online
Given the investment horizon of 90 days OShares Global Internet is expected to generate 0.76 times more return on investment than ProShares Online. However, OShares Global Internet is 1.31 times less risky than ProShares Online. It trades about -0.16 of its potential returns per unit of risk. ProShares Online Retail is currently generating about -0.15 per unit of risk. If you would invest 5,019 in OShares Global Internet on November 29, 2024 and sell it today you would lose (230.00) from holding OShares Global Internet or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OShares Global Internet vs. ProShares Online Retail
Performance |
| Timeline |
| OShares Global Internet |
| ProShares Online Retail |
OShares Global and ProShares Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OShares Global and ProShares Online
The main advantage of trading using opposite OShares Global and ProShares Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OShares Global position performs unexpectedly, ProShares Online 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 Online will offset losses from the drop in ProShares Online's long position.| OShares Global vs. OShares Quality Dividend | OShares Global vs. WisdomTree Cloud Computing | OShares Global vs. Amplify Online Retail | OShares Global vs. ProShares Online Retail |
| ProShares Online vs. Amplify Online Retail | ProShares Online vs. ProShares Long OnlineShort | ProShares Online vs. Global X E commerce | ProShares Online vs. WisdomTree Cloud Computing |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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