Correlation Between ProShares Online and AdvisorShares
Can any of the company-specific risk be diversified away by investing in both ProShares Online and AdvisorShares 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 AdvisorShares 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 AdvisorShares, you can compare the effects of market volatilities on ProShares Online and AdvisorShares 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 AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Online and AdvisorShares.
Diversification Opportunities for ProShares Online and AdvisorShares
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and AdvisorShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Online Retail and AdvisorShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares 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 AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares has no effect on the direction of ProShares Online i.e., ProShares Online and AdvisorShares go up and down completely randomly.
Pair Corralation between ProShares Online and AdvisorShares
If you would invest 4,367 in ProShares Online Retail on August 26, 2024 and sell it today you would earn a total of 126.00 from holding ProShares Online Retail or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.27% |
| Values | Daily Returns |
ProShares Online Retail vs. AdvisorShares
Performance |
| Timeline |
| ProShares Online Retail |
| AdvisorShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Online and AdvisorShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Online and AdvisorShares
The main advantage of trading using opposite ProShares Online and AdvisorShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Online position performs unexpectedly, AdvisorShares 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 AdvisorShares will offset losses from the drop in AdvisorShares' 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 |
| AdvisorShares vs. ProShares Online Retail | AdvisorShares vs. Amplify Online Retail | AdvisorShares vs. ProShares Decline of | AdvisorShares 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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