Correlation Between ProShares Online and ProShares MSCI
Can any of the company-specific risk be diversified away by investing in both ProShares Online and ProShares MSCI 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 Online and ProShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Online Retail and ProShares MSCI Transformational, you can compare the effects of market volatilities on ProShares Online and ProShares MSCI 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 Online with a short position of ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Online and ProShares MSCI.
Diversification Opportunities for ProShares Online and ProShares MSCI
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and ProShares is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Online Retail and ProShares MSCI Transformationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Trans and ProShares Online 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 Online Retail are associated (or correlated) with ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Trans has no effect on the direction of ProShares Online i.e., ProShares Online and ProShares MSCI go up and down completely randomly.
Pair Corralation between ProShares Online and ProShares MSCI
Given the investment horizon of 90 days ProShares Online Retail is expected to generate 1.81 times more return on investment than ProShares MSCI. However, ProShares Online is 1.81 times more volatile than ProShares MSCI Transformational. It trades about 0.07 of its potential returns per unit of risk. ProShares MSCI Transformational is currently generating about 0.1 per unit of risk. If you would invest 2,941 in ProShares Online Retail on November 28, 2024 and sell it today you would earn a total of 1,868 from holding ProShares Online Retail or generate 63.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
ProShares Online Retail vs. ProShares MSCI Transformationa
Performance |
| Timeline |
| ProShares Online Retail |
| ProShares MSCI Trans |
ProShares Online and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Online and ProShares MSCI
The main advantage of trading using opposite ProShares Online and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Online position performs unexpectedly, ProShares MSCI 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 MSCI will offset losses from the drop in ProShares MSCI's long position.| 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 |
| ProShares MSCI vs. Innovator Loup Frontier | ProShares MSCI vs. ProShares Pet Care | ProShares MSCI vs. Global X Telemedicine | ProShares MSCI vs. ProShares Online Retail |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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