Correlation Between AdvisorShares and ProShares Online
Can any of the company-specific risk be diversified away by investing in both AdvisorShares and ProShares Online 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 AdvisorShares and ProShares Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares and ProShares Online Retail, you can compare the effects of market volatilities on AdvisorShares and ProShares Online 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 AdvisorShares with a short position of ProShares Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares and ProShares Online.
Diversification Opportunities for AdvisorShares and ProShares Online
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AdvisorShares and ProShares is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares and ProShares Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Online Retail and AdvisorShares 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 AdvisorShares are associated (or correlated) with ProShares Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Online Retail has no effect on the direction of AdvisorShares i.e., AdvisorShares and ProShares Online go up and down completely randomly.
Pair Corralation between AdvisorShares and ProShares Online
If you would invest 4,401 in ProShares Online Retail on August 30, 2024 and sell it today you would earn a total of 217.00 from holding ProShares Online Retail or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
AdvisorShares vs. ProShares Online Retail
Performance |
| Timeline |
| AdvisorShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Online Retail |
AdvisorShares and ProShares Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares and ProShares Online
The main advantage of trading using opposite AdvisorShares and ProShares Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares position performs unexpectedly, ProShares Online 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 Online will offset losses from the drop in ProShares Online's long position.| AdvisorShares vs. AdvisorShares Q Dynamic | AdvisorShares vs. Direxion Daily Dow | AdvisorShares vs. Main Thematic Innovation | AdvisorShares vs. AdvisorShares Vice ETF |
| ProShares Online vs. Amplify Online Retail | ProShares Online vs. ProShares Long OnlineShort | ProShares Online vs. Global X E commerce | ProShares Online vs. WisdomTree Cloud Computing |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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