Correlation Between ProShares Online and FFHG
Can any of the company-specific risk be diversified away by investing in both ProShares Online and FFHG 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 FFHG 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 FFHG, you can compare the effects of market volatilities on ProShares Online and FFHG 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 FFHG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Online and FFHG.
Diversification Opportunities for ProShares Online and FFHG
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and FFHG is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Online Retail and FFHG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFHG 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 FFHG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFHG has no effect on the direction of ProShares Online i.e., ProShares Online and FFHG go up and down completely randomly.
Pair Corralation between ProShares Online and FFHG
Given the investment horizon of 90 days ProShares Online Retail is expected to generate 2.91 times more return on investment than FFHG. However, ProShares Online is 2.91 times more volatile than FFHG. It trades about 0.05 of its potential returns per unit of risk. FFHG is currently generating about 0.06 per unit of risk. If you would invest 3,099 in ProShares Online Retail on August 27, 2024 and sell it today you would earn a total of 1,394 from holding ProShares Online Retail or generate 44.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.65% |
| Values | Daily Returns |
ProShares Online Retail vs. FFHG
Performance |
| Timeline |
| ProShares Online Retail |
| FFHG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Online and FFHG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Online and FFHG
The main advantage of trading using opposite ProShares Online and FFHG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Online position performs unexpectedly, FFHG 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 FFHG will offset losses from the drop in FFHG'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 |
| FFHG vs. ProShares Online Retail | FFHG vs. Amplify Online Retail | FFHG vs. ProShares Decline of | FFHG vs. Global X E commerce |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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