Correlation Between ProShares and Tidal ETF
Can any of the company-specific risk be diversified away by investing in both ProShares and Tidal ETF 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 Tidal ETF 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 Tidal ETF Trust, you can compare the effects of market volatilities on ProShares and Tidal ETF 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 Tidal ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Tidal ETF.
Diversification Opportunities for ProShares and Tidal ETF
Poor diversification
The 3 months correlation between ProShares and Tidal is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP MidCap and Tidal ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal ETF Trust 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 Tidal ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal ETF Trust has no effect on the direction of ProShares i.e., ProShares and Tidal ETF go up and down completely randomly.
Pair Corralation between ProShares and Tidal ETF
Given the investment horizon of 90 days ProShares SP MidCap is expected to generate 1.08 times more return on investment than Tidal ETF. However, ProShares is 1.08 times more volatile than Tidal ETF Trust. It trades about 0.0 of its potential returns per unit of risk. Tidal ETF Trust is currently generating about -0.03 per unit of risk. If you would invest 8,557 in ProShares SP MidCap on September 12, 2024 and sell it today you would lose (9.00) from holding ProShares SP MidCap or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares SP MidCap vs. Tidal ETF Trust
Performance |
| Timeline |
| ProShares SP MidCap |
| Tidal ETF Trust |
ProShares and Tidal ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Tidal ETF
The main advantage of trading using opposite ProShares and Tidal ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Tidal ETF 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 Tidal ETF will offset losses from the drop in Tidal ETF's long position.| ProShares vs. American Sierra Gold | ProShares vs. American Century ETF | ProShares vs. Avantis Emerging Markets | ProShares vs. Avantis Emerging Markets |
| Tidal ETF vs. Vanguard Minimum Volatility | Tidal ETF vs. Invesco SP Emerging | Tidal ETF vs. iShares MSCI Emerging | Tidal ETF vs. iShares MSCI Emerging |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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