Correlation Between Rbb Fund and ProShares
Can any of the company-specific risk be diversified away by investing in both Rbb Fund and ProShares 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 Rbb Fund and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbb Fund and ProShares SP 500, you can compare the effects of market volatilities on Rbb Fund and ProShares 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 Rbb Fund with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and ProShares.
Diversification Opportunities for Rbb Fund and ProShares
Significant diversification
The 3 months correlation between Rbb and ProShares is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP 500 and Rbb Fund 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 Rbb Fund are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of Rbb Fund i.e., Rbb Fund and ProShares go up and down completely randomly.
Pair Corralation between Rbb Fund and ProShares
Given the investment horizon of 90 days Rbb Fund is expected to generate 3.93 times less return on investment than ProShares. But when comparing it to its historical volatility, Rbb Fund is 5.46 times less risky than ProShares. It trades about 0.2 of its potential returns per unit of risk. ProShares SP 500 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9,702 in ProShares SP 500 on August 29, 2024 and sell it today you would earn a total of 1,111 from holding ProShares SP 500 or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbb Fund vs. ProShares SP 500
Performance |
| Timeline |
| Rbb Fund |
| ProShares SP 500 |
Rbb Fund and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbb Fund and ProShares
The main advantage of trading using opposite Rbb Fund and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund position performs unexpectedly, ProShares 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 will offset losses from the drop in ProShares' long position.| Rbb Fund vs. Rbb Fund | Rbb Fund vs. Rbb Fund | Rbb Fund vs. US Treasury 12 | Rbb Fund vs. iShares 0 3 Month |
| ProShares vs. iShares Core Dividend | ProShares vs. SPDR SP Dividend | ProShares vs. Invesco SP 500 | ProShares vs. Vanguard Dividend Appreciation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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