Correlation Between ProShares Short and ProShares Long
Can any of the company-specific risk be diversified away by investing in both ProShares Short and ProShares Long 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 Short and ProShares Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Short FTSE and ProShares Long OnlineShort, you can compare the effects of market volatilities on ProShares Short and ProShares Long 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 Short with a short position of ProShares Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and ProShares Long.
Diversification Opportunities for ProShares Short and ProShares Long
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ProShares is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short FTSE and ProShares Long OnlineShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Long Onlin and ProShares Short 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 Short FTSE are associated (or correlated) with ProShares Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Long Onlin has no effect on the direction of ProShares Short i.e., ProShares Short and ProShares Long go up and down completely randomly.
Pair Corralation between ProShares Short and ProShares Long
Considering the 90-day investment horizon ProShares Short FTSE is expected to generate 2.6 times more return on investment than ProShares Long. However, ProShares Short is 2.6 times more volatile than ProShares Long OnlineShort. It trades about 0.1 of its potential returns per unit of risk. ProShares Long OnlineShort is currently generating about 0.03 per unit of risk. If you would invest 1,355 in ProShares Short FTSE on August 30, 2024 and sell it today you would earn a total of 66.00 from holding ProShares Short FTSE or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Short FTSE vs. ProShares Long OnlineShort
Performance |
| Timeline |
| ProShares Short FTSE |
| ProShares Long Onlin |
ProShares Short and ProShares Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Short and ProShares Long
The main advantage of trading using opposite ProShares Short and ProShares Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short position performs unexpectedly, ProShares Long 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 Long will offset losses from the drop in ProShares Long's long position.| ProShares Short vs. ProShares Ultra FTSE | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short Real |
| ProShares Long vs. ProShares Online Retail | ProShares Long vs. Amplify Online Retail | ProShares Long vs. ProShares Decline of | ProShares Long vs. Global X E commerce |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |