Correlation Between Profunds Ultrashort and China Fund
Can any of the company-specific risk be diversified away by investing in both Profunds Ultrashort and China Fund 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 Profunds Ultrashort and China Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profunds Ultrashort Nasdaq 100 and China Fund, you can compare the effects of market volatilities on Profunds Ultrashort and China Fund 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 Profunds Ultrashort with a short position of China Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds Ultrashort and China Fund.
Diversification Opportunities for Profunds Ultrashort and China Fund
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Profunds and China is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Profunds Ultrashort Nasdaq 100 and China Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fund and Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100 are associated (or correlated) with China Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fund has no effect on the direction of Profunds Ultrashort i.e., Profunds Ultrashort and China Fund go up and down completely randomly.
Pair Corralation between Profunds Ultrashort and China Fund
Assuming the 90 days horizon Profunds Ultrashort Nasdaq 100 is expected to generate 1.01 times more return on investment than China Fund. However, Profunds Ultrashort is 1.01 times more volatile than China Fund. It trades about -0.08 of its potential returns per unit of risk. China Fund is currently generating about -0.19 per unit of risk. If you would invest 2,846 in Profunds Ultrashort Nasdaq 100 on August 28, 2024 and sell it today you would lose (122.00) from holding Profunds Ultrashort Nasdaq 100 or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profunds Ultrashort Nasdaq 100 vs. China Fund
Performance |
| Timeline |
| Profunds Ultrashort |
| China Fund |
Profunds Ultrashort and China Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profunds Ultrashort and China Fund
The main advantage of trading using opposite Profunds Ultrashort and China Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profunds Ultrashort position performs unexpectedly, China Fund 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 China Fund will offset losses from the drop in China Fund's long position.| Profunds Ultrashort vs. Rbc Short Duration | Profunds Ultrashort vs. Short Intermediate Bond Fund | Profunds Ultrashort vs. Siit Ultra Short | Profunds Ultrashort vs. Angel Oak Ultrashort |
| China Fund vs. Ashmore Group Plc | China Fund vs. Mexico Equity And | China Fund vs. Western Asset Managed | China Fund vs. Blackrock Muniholdings Quality |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |