Correlation Between AXS TSLA and ProShares Short
Can any of the company-specific risk be diversified away by investing in both AXS TSLA and ProShares Short 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 AXS TSLA and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXS TSLA Bear and ProShares Short MSCI, you can compare the effects of market volatilities on AXS TSLA and ProShares Short 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 AXS TSLA with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS TSLA and ProShares Short.
Diversification Opportunities for AXS TSLA and ProShares Short
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXS and ProShares is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AXS TSLA Bear and ProShares Short MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short MSCI and AXS TSLA 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 AXS TSLA Bear are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short MSCI has no effect on the direction of AXS TSLA i.e., AXS TSLA and ProShares Short go up and down completely randomly.
Pair Corralation between AXS TSLA and ProShares Short
Given the investment horizon of 90 days AXS TSLA Bear is expected to under-perform the ProShares Short. In addition to that, AXS TSLA is 5.84 times more volatile than ProShares Short MSCI. It trades about -0.04 of its total potential returns per unit of risk. ProShares Short MSCI is currently generating about -0.02 per unit of volatility. If you would invest 2,796 in ProShares Short MSCI on November 28, 2024 and sell it today you would lose (274.00) from holding ProShares Short MSCI or give up 9.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXS TSLA Bear vs. ProShares Short MSCI
Performance |
| Timeline |
| AXS TSLA Bear |
| ProShares Short MSCI |
AXS TSLA and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXS TSLA and ProShares Short
The main advantage of trading using opposite AXS TSLA and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS TSLA position performs unexpectedly, ProShares Short 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 Short will offset losses from the drop in ProShares Short's long position.| AXS TSLA vs. AXS 125X NVDA | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Tuttle Capital Short |
| ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares UltraShort MSCI | ProShares Short vs. ProShares UltraShort MSCI | ProShares Short vs. ProShares UltraShort 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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