Correlation Between ProShares Short and ProShares Long
Can any of the company-specific risk be diversified away by investing in both ProShares Short and ProShares Long 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 Short and ProShares Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Short Real and ProShares Long OnlineShort, you can compare the effects of market volatilities on ProShares Short and ProShares Long 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 Short with a short position of ProShares Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and ProShares Long.
Diversification Opportunities for ProShares Short and ProShares Long
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ProShares and ProShares is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short Real and ProShares Long OnlineShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Long Onlin and ProShares Short 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 Short Real are associated (or correlated) with ProShares Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Long Onlin has no effect on the direction of ProShares Short i.e., ProShares Short and ProShares Long go up and down completely randomly.
Pair Corralation between ProShares Short and ProShares Long
Considering the 90-day investment horizon ProShares Short Real is expected to under-perform the ProShares Long. In addition to that, ProShares Short is 1.17 times more volatile than ProShares Long OnlineShort. It trades about -0.11 of its total potential returns per unit of risk. ProShares Long OnlineShort is currently generating about 0.03 per unit of volatility. If you would invest 4,618 in ProShares Long OnlineShort on August 30, 2024 and sell it today you would earn a total of 22.00 from holding ProShares Long OnlineShort or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Short Real vs. ProShares Long OnlineShort
Performance |
| Timeline |
| ProShares Short Real |
| ProShares Long Onlin |
ProShares Short and ProShares Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Short and ProShares Long
The main advantage of trading using opposite ProShares Short and ProShares Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short position performs unexpectedly, ProShares Long 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 ProShares Long will offset losses from the drop in ProShares Long's long position.| ProShares Short vs. AXS TSLA Bear | ProShares Short vs. ProShares Trust | ProShares Short vs. ProShares UltraShort Bloomberg |
| ProShares Long vs. ProShares Online Retail | ProShares Long vs. Amplify Online Retail | ProShares Long vs. ProShares Decline of | ProShares Long 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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