Correlation Between ProShares and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both ProShares and Sprott Physical 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 and Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares K 1 Free and Sprott Physical Silver, you can compare the effects of market volatilities on ProShares and Sprott Physical 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 with a short position of Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Sprott Physical.
Diversification Opportunities for ProShares and Sprott Physical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Sprott is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares K 1 Free and Sprott Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Silver and ProShares 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 K 1 Free are associated (or correlated) with Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Silver has no effect on the direction of ProShares i.e., ProShares and Sprott Physical go up and down completely randomly.
Pair Corralation between ProShares and Sprott Physical
If you would invest 1,011 in Sprott Physical Silver on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Sprott Physical Silver or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares K 1 Free vs. Sprott Physical Silver
Performance |
| Timeline |
| ProShares K 1 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Sprott Physical Silver |
ProShares and Sprott Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Sprott Physical
The main advantage of trading using opposite ProShares and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Sprott Physical 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 Sprott Physical will offset losses from the drop in Sprott Physical's long position.| ProShares vs. United States 12 | ProShares vs. Credit Suisse X Links | ProShares vs. Invesco DB Oil | ProShares vs. United States 12 |
| Sprott Physical vs. Sprott Physical Gold | Sprott Physical vs. Sprott Physical Platinum | Sprott Physical vs. Blue Owl Capital | Sprott Physical vs. Ares Management LP |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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