Correlation Between Abertis Infraestructuras and ProShares

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Can any of the company-specific risk be diversified away by investing in both Abertis Infraestructuras 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 Abertis Infraestructuras and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abertis Infraestructuras SA and ProShares K 1 Free, you can compare the effects of market volatilities on Abertis Infraestructuras 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 Abertis Infraestructuras with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abertis Infraestructuras and ProShares.

Diversification Opportunities for Abertis Infraestructuras and ProShares

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Abertis and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Abertis Infraestructuras SA and ProShares K-1 Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares K-1 Free and Abertis Infraestructuras 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 Abertis Infraestructuras SA 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 K-1 Free has no effect on the direction of Abertis Infraestructuras i.e., Abertis Infraestructuras and ProShares go up and down completely randomly.

Pair Corralation between Abertis Infraestructuras and ProShares

If you would invest  4,615  in ProShares K 1 Free on December 29, 2023 and sell it today you would earn a total of  122.00  from holding ProShares K 1 Free or generate 2.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.2%
ValuesDaily Returns

Abertis Infraestructuras SA  vs.  ProShares K-1 Free

 Performance 
       Timeline  
Abertis Infraestructuras 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Abertis Infraestructuras SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Abertis Infraestructuras is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
ProShares K-1 Free 

Risk-Adjusted Performance

13 of 100

 
Low
 
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Good
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares K 1 Free are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, ProShares disclosed solid returns over the last few months and may actually be approaching a breakup point.

Abertis Infraestructuras and ProShares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Abertis Infraestructuras and ProShares

The main advantage of trading using opposite Abertis Infraestructuras and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abertis Infraestructuras 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.
The idea behind Abertis Infraestructuras SA and ProShares K 1 Free pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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