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 Financials 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
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and ProShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short Financials 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 Financials 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 Financials is expected to under-perform the ProShares Long. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Short Financials is 1.49 times less risky than ProShares Long. The etf trades about -0.07 of its potential returns per unit of risk. The ProShares Long OnlineShort is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,178 in ProShares Long OnlineShort on August 30, 2024 and sell it today you would earn a total of 1,462 from holding ProShares Long OnlineShort or generate 46.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Short Financials vs. ProShares Long OnlineShort
Performance |
| Timeline |
| ProShares Short Fina |
| 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. ProShares Short MSCI | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short SmallCap600 | ProShares Short vs. ProShares Short MidCap400 |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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