Correlation Between ProShares Metaverse and ProShares Supply
Can any of the company-specific risk be diversified away by investing in both ProShares Metaverse and ProShares Supply 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 Metaverse and ProShares Supply into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Metaverse ETF and ProShares Supply Chain, you can compare the effects of market volatilities on ProShares Metaverse and ProShares Supply 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 Metaverse with a short position of ProShares Supply. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Metaverse and ProShares Supply.
Diversification Opportunities for ProShares Metaverse and ProShares Supply
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and ProShares is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Metaverse ETF and ProShares Supply Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Supply Chain and ProShares Metaverse 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 Metaverse ETF are associated (or correlated) with ProShares Supply. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Supply Chain has no effect on the direction of ProShares Metaverse i.e., ProShares Metaverse and ProShares Supply go up and down completely randomly.
Pair Corralation between ProShares Metaverse and ProShares Supply
Given the investment horizon of 90 days ProShares Metaverse ETF is expected to generate 1.78 times more return on investment than ProShares Supply. However, ProShares Metaverse is 1.78 times more volatile than ProShares Supply Chain. It trades about 0.13 of its potential returns per unit of risk. ProShares Supply Chain is currently generating about 0.22 per unit of risk. If you would invest 4,406 in ProShares Metaverse ETF on August 26, 2024 and sell it today you would earn a total of 153.00 from holding ProShares Metaverse ETF or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Metaverse ETF vs. ProShares Supply Chain
Performance |
| Timeline |
| ProShares Metaverse ETF |
| ProShares Supply Chain |
ProShares Metaverse and ProShares Supply Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Metaverse and ProShares Supply
The main advantage of trading using opposite ProShares Metaverse and ProShares Supply positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Metaverse position performs unexpectedly, ProShares Supply 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 Supply will offset losses from the drop in ProShares Supply's long position.| ProShares Metaverse vs. Invesco DWA Utilities | ProShares Metaverse vs. Invesco Dynamic Large | ProShares Metaverse vs. Invesco Dynamic Large | ProShares Metaverse vs. HUMANA INC |
| ProShares Supply vs. SonicShares Global Shipping | ProShares Supply vs. ProShares Smart Materials | ProShares Supply vs. ProShares Metaverse ETF | ProShares Supply vs. ProShares SP Kensho |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |