Correlation Between IShares Core and ProShares

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares Core US and ProShares, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and ProShares.

Diversification Opportunities for IShares Core and ProShares

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between IShares Core and ProShares

If you would invest (100.00) in ProShares on December 29, 2023 and sell it today you would earn a total of  100.00  from holding ProShares or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

IShares Core US  vs.  ProShares

 Performance 
       Timeline  
IShares Core US 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days IShares Core US has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, IShares Core is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
ProShares 

Risk-Adjusted Performance

0 of 100

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

IShares Core and ProShares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares Core and ProShares

The main advantage of trading using opposite IShares Core and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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 IShares Core US and ProShares 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.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes