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 SmallCap600, 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
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AXS and ProShares is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AXS TSLA Bear and ProShares Short SmallCap600 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short Smal 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 Smal 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 generate 66.35 times more return on investment than ProShares Short. However, AXS TSLA is 66.35 times more volatile than ProShares Short SmallCap600. It trades about 0.19 of its potential returns per unit of risk. ProShares Short SmallCap600 is currently generating about -0.26 per unit of risk. If you would invest 1,621 in AXS TSLA Bear on September 1, 2024 and sell it today you would earn a total of 2,684 from holding AXS TSLA Bear or generate 165.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AXS TSLA Bear vs. ProShares Short SmallCap600
Performance |
| Timeline |
| AXS TSLA Bear |
| ProShares Short Smal |
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 MidCap400 | ProShares Short vs. ProShares UltraShort SmallCap600 | ProShares Short vs. ProShares UltraShort MidCap400 | ProShares Short vs. ProShares UltraShort Health |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |