Correlation Between ProShares and Iq Candriam
Can any of the company-specific risk be diversified away by investing in both ProShares and Iq Candriam 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 Iq Candriam 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 Iq Candriam ESG, you can compare the effects of market volatilities on ProShares and Iq Candriam 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 Iq Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Iq Candriam.
Diversification Opportunities for ProShares and Iq Candriam
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and IQSM is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP MidCap and Iq Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iq Candriam ESG 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 Iq Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iq Candriam ESG has no effect on the direction of ProShares i.e., ProShares and Iq Candriam go up and down completely randomly.
Pair Corralation between ProShares and Iq Candriam
Given the investment horizon of 90 days ProShares SP MidCap is expected to generate 1.21 times more return on investment than Iq Candriam. However, ProShares is 1.21 times more volatile than Iq Candriam ESG. It trades about 0.38 of its potential returns per unit of risk. Iq Candriam ESG is currently generating about 0.35 per unit of risk. If you would invest 8,055 in ProShares SP MidCap on September 1, 2024 and sell it today you would earn a total of 785.00 from holding ProShares SP MidCap or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
ProShares SP MidCap vs. Iq Candriam ESG
Performance |
| Timeline |
| ProShares SP MidCap |
| Iq Candriam ESG |
ProShares and Iq Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Iq Candriam
The main advantage of trading using opposite ProShares and Iq Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Iq Candriam 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 Iq Candriam will offset losses from the drop in Iq Candriam's long position.| ProShares vs. iShares Small Cap | ProShares vs. Invesco ESG NASDAQ | ProShares vs. Invesco ESG NASDAQ | ProShares vs. BlackRock Carbon Transition |
| Iq Candriam vs. JPMorgan Fundamental Data | Iq Candriam vs. Vanguard Mid Cap Index | Iq Candriam vs. SPDR SP 400 | Iq Candriam vs. SPDR SP 400 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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