Correlation Between ProShares and Altrius Global
Can any of the company-specific risk be diversified away by investing in both ProShares and Altrius Global 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 and Altrius Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP 500 and Altrius Global Dividend, you can compare the effects of market volatilities on ProShares and Altrius Global 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 with a short position of Altrius Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Altrius Global.
Diversification Opportunities for ProShares and Altrius Global
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProShares and Altrius is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP 500 and Altrius Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altrius Global Dividend and ProShares 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 SP 500 are associated (or correlated) with Altrius Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altrius Global Dividend has no effect on the direction of ProShares i.e., ProShares and Altrius Global go up and down completely randomly.
Pair Corralation between ProShares and Altrius Global
Given the investment horizon of 90 days ProShares SP 500 is expected to generate 1.14 times more return on investment than Altrius Global. However, ProShares is 1.14 times more volatile than Altrius Global Dividend. It trades about 0.11 of its potential returns per unit of risk. Altrius Global Dividend is currently generating about 0.05 per unit of risk. If you would invest 4,196 in ProShares SP 500 on August 23, 2024 and sell it today you would earn a total of 2,196 from holding ProShares SP 500 or generate 52.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares SP 500 vs. Altrius Global Dividend
Performance |
| Timeline |
| ProShares SP 500 |
| Altrius Global Dividend |
ProShares and Altrius Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Altrius Global
The main advantage of trading using opposite ProShares and Altrius Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Altrius Global 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 Altrius Global will offset losses from the drop in Altrius Global's long position.| ProShares vs. iShares ESG Aware | ProShares vs. iShares ESG Aware | ProShares vs. HUMANA INC | ProShares vs. Aquagold International |
| Altrius Global vs. FCF International Quality | Altrius Global vs. American Century STOXX | Altrius Global vs. PIMCO RAFI Dynamic | Altrius Global vs. ProShares SP 500 |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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