Two Equities Correlation Analysis
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for ProShares UltraShort and NYSE Composite
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and NYSE is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Bloomberg and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and ProShares UltraShort 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 UltraShort Bloomberg are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and NYSE Composite go up and down completely randomly.
Pair Corralation between ProShares UltraShort and NYSE Composite
Given the investment horizon of 90 days ProShares UltraShort Bloomberg is expected to generate 35.49 times more return on investment than NYSE Composite. However, ProShares UltraShort is 35.49 times more volatile than NYSE Composite. It trades about 0.08 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.1 per unit of risk. If you would invest 7,376 in ProShares UltraShort Bloomberg on January 25, 2024 and sell it today you would lose (826.00) from holding ProShares UltraShort Bloomberg or give up 11.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
ProShares UltraShort Bloomberg vs. NYSE Composite
Performance |
Timeline |
ProShares UltraShort and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
ProShares UltraShort Bloomberg
Pair trading matchups for ProShares UltraShort
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with ProShares UltraShort and NYSE Composite
The main advantage of trading using opposite ProShares UltraShort and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.ProShares UltraShort vs. ProShares Ultra Bloomberg | ProShares UltraShort vs. Direxion Daily Semiconductor | ProShares UltraShort vs. MicroSectors Big Oil | ProShares UltraShort vs. Direxion Daily SP |
NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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