Correlation Between ProShares and YieldMax AMZN
Can any of the company-specific risk be diversified away by investing in both ProShares and YieldMax AMZN 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 YieldMax AMZN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP MidCap and YieldMax AMZN Option, you can compare the effects of market volatilities on ProShares and YieldMax AMZN 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 YieldMax AMZN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and YieldMax AMZN.
Diversification Opportunities for ProShares and YieldMax AMZN
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and YieldMax is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP MidCap and YieldMax AMZN Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax AMZN Option 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 SP MidCap are associated (or correlated) with YieldMax AMZN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax AMZN Option has no effect on the direction of ProShares i.e., ProShares and YieldMax AMZN go up and down completely randomly.
Pair Corralation between ProShares and YieldMax AMZN
Given the investment horizon of 90 days ProShares is expected to generate 34.19 times less return on investment than YieldMax AMZN. But when comparing it to its historical volatility, ProShares SP MidCap is 70.23 times less risky than YieldMax AMZN. It trades about 0.12 of its potential returns per unit of risk. YieldMax AMZN Option is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,391 in YieldMax AMZN Option on August 26, 2024 and sell it today you would earn a total of 454.00 from holding YieldMax AMZN Option or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
ProShares SP MidCap vs. YieldMax AMZN Option
Performance |
| Timeline |
| ProShares SP MidCap |
| YieldMax AMZN Option |
ProShares and YieldMax AMZN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and YieldMax AMZN
The main advantage of trading using opposite ProShares and YieldMax AMZN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, YieldMax AMZN 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 YieldMax AMZN will offset losses from the drop in YieldMax AMZN's long position.| ProShares vs. Vanguard Mid Cap Index | ProShares vs. Vanguard Extended Market | ProShares vs. iShares Core SP | ProShares vs. SPDR SP MIDCAP |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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