Correlation Between ProShares and IShares
Can any of the company-specific risk be diversified away by investing in both ProShares and IShares 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 and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares and IShares, you can compare the effects of market volatilities on ProShares and IShares 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 with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and IShares.
Diversification Opportunities for ProShares and IShares
Pay attention - limited upside
The 3 months correlation between ProShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and ProShares 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 are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of ProShares i.e., ProShares and IShares go up and down completely randomly.
Pair Corralation between ProShares and IShares
If you would invest (100.00) in IShares on January 25, 2024 and sell it today you would earn a total of 100.00 from holding IShares or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ProShares vs. IShares
Performance |
Timeline |
ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares and IShares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares and IShares
The main advantage of trading using opposite ProShares and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' long position.ProShares vs. ProShares Short SP500 | ProShares vs. ProShares Metaverse ETF | ProShares vs. ProShares VIX Mid Term | ProShares vs. ProShares VIX Short Term |
IShares vs. iShares Insurance ETF | IShares vs. SCOR PK | IShares vs. Morningstar Unconstrained Allocation | IShares vs. SPACE |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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