Correlation Between Abrdn Bloomberg and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Abrdn Bloomberg and ProShares Short 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 Abrdn Bloomberg and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Bloomberg All and ProShares Short QQQ, you can compare the effects of market volatilities on Abrdn Bloomberg and ProShares Short 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 Abrdn Bloomberg with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Bloomberg and ProShares Short.
Diversification Opportunities for Abrdn Bloomberg and ProShares Short
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Abrdn and ProShares is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Bloomberg All and ProShares Short QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short QQQ and Abrdn Bloomberg 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 abrdn Bloomberg All are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short QQQ has no effect on the direction of Abrdn Bloomberg i.e., Abrdn Bloomberg and ProShares Short go up and down completely randomly.
Pair Corralation between Abrdn Bloomberg and ProShares Short
Considering the 90-day investment horizon Abrdn Bloomberg is expected to generate 40.65 times less return on investment than ProShares Short. But when comparing it to its historical volatility, abrdn Bloomberg All is 131.16 times less risky than ProShares Short. It trades about 0.39 of its potential returns per unit of risk. ProShares Short QQQ is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,431 in ProShares Short QQQ on January 25, 2024 and sell it today you would earn a total of 148.00 from holding ProShares Short QQQ or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
abrdn Bloomberg All vs. ProShares Short QQQ
Performance |
| Timeline |
| abrdn Bloomberg All |
| ProShares Short QQQ |
Abrdn Bloomberg and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Bloomberg and ProShares Short
The main advantage of trading using opposite Abrdn Bloomberg and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Bloomberg position performs unexpectedly, ProShares Short 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 Short will offset losses from the drop in ProShares Short's long position.| Abrdn Bloomberg vs. Amplify Inflation Fighter | Abrdn Bloomberg vs. iShares Bloomberg Roll | Abrdn Bloomberg vs. KraneShares California Carbon |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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