Correlation Between FolioBeyond Rising and ProShares High
Can any of the company-specific risk be diversified away by investing in both FolioBeyond Rising and ProShares High 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 FolioBeyond Rising and ProShares High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FolioBeyond Rising Rates and ProShares High YieldInterest, you can compare the effects of market volatilities on FolioBeyond Rising and ProShares High 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 FolioBeyond Rising with a short position of ProShares High. Check out your portfolio center. Please also check ongoing floating volatility patterns of FolioBeyond Rising and ProShares High.
Diversification Opportunities for FolioBeyond Rising and ProShares High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FolioBeyond and ProShares is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding FolioBeyond Rising Rates and ProShares High YieldInterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares High Yield and FolioBeyond Rising 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 FolioBeyond Rising Rates are associated (or correlated) with ProShares High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares High Yield has no effect on the direction of FolioBeyond Rising i.e., FolioBeyond Rising and ProShares High go up and down completely randomly.
Pair Corralation between FolioBeyond Rising and ProShares High
Given the investment horizon of 90 days FolioBeyond Rising Rates is expected to under-perform the ProShares High. In addition to that, FolioBeyond Rising is 1.12 times more volatile than ProShares High YieldInterest. It trades about -0.07 of its total potential returns per unit of risk. ProShares High YieldInterest is currently generating about 0.13 per unit of volatility. If you would invest 6,567 in ProShares High YieldInterest on November 4, 2024 and sell it today you would earn a total of 46.00 from holding ProShares High YieldInterest or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FolioBeyond Rising Rates vs. ProShares High YieldInterest
Performance |
| Timeline |
| FolioBeyond Rising Rates |
| ProShares High Yield |
FolioBeyond Rising and ProShares High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FolioBeyond Rising and ProShares High
The main advantage of trading using opposite FolioBeyond Rising and ProShares High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FolioBeyond Rising position performs unexpectedly, ProShares High 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 High will offset losses from the drop in ProShares High's long position.| FolioBeyond Rising vs. Simplify Interest Rate | FolioBeyond Rising vs. KFA Mount Lucas | FolioBeyond Rising vs. Horizon Kinetics Inflation | FolioBeyond Rising vs. iMGP DBi Managed |
| ProShares High vs. ProShares Investment GradeInterest | ProShares High vs. iShares Interest Rate | ProShares High vs. WisdomTree Interest Rate | ProShares High vs. First Trust Tactical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |