Correlation Between ProShares Short and NKEQ
Can any of the company-specific risk be diversified away by investing in both ProShares Short and NKEQ 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 NKEQ 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 NKEQ, you can compare the effects of market volatilities on ProShares Short and NKEQ 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 NKEQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and NKEQ.
Diversification Opportunities for ProShares Short and NKEQ
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and NKEQ is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short Russell2000 and NKEQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NKEQ 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 NKEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NKEQ has no effect on the direction of ProShares Short i.e., ProShares Short and NKEQ go up and down completely randomly.
Pair Corralation between ProShares Short and NKEQ
If you would invest 2,895 in NKEQ on September 4, 2024 and sell it today you would earn a total of 0.00 from holding NKEQ or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
ProShares Short Russell2000 vs. NKEQ
Performance |
| Timeline |
| ProShares Short Russ |
| NKEQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Short and NKEQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Short and NKEQ
The main advantage of trading using opposite ProShares Short and NKEQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short position performs unexpectedly, NKEQ 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 NKEQ will offset losses from the drop in NKEQ's long position.| ProShares Short vs. ProShares UltraShort MSCI | ProShares Short vs. ProShares Ultra MSCI | ProShares Short vs. ProShares UltraShort MSCI | ProShares Short vs. Direxion Daily MSCI |
| NKEQ vs. ProShares UltraShort MSCI | NKEQ vs. ProShares Ultra MSCI | NKEQ vs. ProShares UltraShort MSCI | NKEQ vs. Direxion Daily MSCI |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |