Correlation Between ProShares Short and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both ProShares Short and Tidal Trust 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 Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Short Russell2000 and Tidal Trust II, you can compare the effects of market volatilities on ProShares Short and Tidal Trust 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 Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and Tidal Trust.
Diversification Opportunities for ProShares Short and Tidal Trust
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Tidal is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short Russell2000 and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II 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 Russell2000 are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of ProShares Short i.e., ProShares Short and Tidal Trust go up and down completely randomly.
Pair Corralation between ProShares Short and Tidal Trust
Considering the 90-day investment horizon ProShares Short Russell2000 is expected to under-perform the Tidal Trust. In addition to that, ProShares Short is 2.07 times more volatile than Tidal Trust II. It trades about -0.28 of its total potential returns per unit of risk. Tidal Trust II is currently generating about 0.23 per unit of volatility. If you would invest 3,152 in Tidal Trust II on September 2, 2024 and sell it today you would earn a total of 120.00 from holding Tidal Trust II or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Short Russell2000 vs. Tidal Trust II
Performance |
| Timeline |
| ProShares Short Russ |
| Tidal Trust II |
ProShares Short and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Short and Tidal Trust
The main advantage of trading using opposite ProShares Short and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short position performs unexpectedly, Tidal Trust 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 Trust will offset losses from the drop in Tidal Trust's long position.| ProShares Short vs. ProShares Short QQQ | ProShares Short vs. ProShares Short Dow30 | ProShares Short vs. ProShares Short MidCap400 | ProShares Short vs. ProShares UltraShort Russell2000 |
| Tidal Trust vs. ProShares VIX Mid Term | Tidal Trust vs. iPath Series B | Tidal Trust vs. ProShares Short Russell2000 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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