Correlation Between ProShares and PortfolioPlus Emerging
Can any of the company-specific risk be diversified away by investing in both ProShares and PortfolioPlus Emerging 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 PortfolioPlus Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares K 1 Free and PortfolioPlus Emerging Markets, you can compare the effects of market volatilities on ProShares and PortfolioPlus Emerging 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 PortfolioPlus Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and PortfolioPlus Emerging.
Diversification Opportunities for ProShares and PortfolioPlus Emerging
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and PortfolioPlus is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ProShares K 1 Free and PortfolioPlus Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PortfolioPlus Emerging 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 K 1 Free are associated (or correlated) with PortfolioPlus Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PortfolioPlus Emerging has no effect on the direction of ProShares i.e., ProShares and PortfolioPlus Emerging go up and down completely randomly.
Pair Corralation between ProShares and PortfolioPlus Emerging
Given the investment horizon of 90 days ProShares K 1 Free is expected to generate 1.12 times more return on investment than PortfolioPlus Emerging. However, ProShares is 1.12 times more volatile than PortfolioPlus Emerging Markets. It trades about 0.1 of its potential returns per unit of risk. PortfolioPlus Emerging Markets is currently generating about -0.24 per unit of risk. If you would invest 4,720 in ProShares K 1 Free on January 20, 2024 and sell it today you would earn a total of 84.00 from holding ProShares K 1 Free or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares K 1 Free vs. PortfolioPlus Emerging Markets
Performance |
| Timeline |
| ProShares K 1 |
| PortfolioPlus Emerging |
ProShares and PortfolioPlus Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and PortfolioPlus Emerging
The main advantage of trading using opposite ProShares and PortfolioPlus Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, PortfolioPlus Emerging 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 PortfolioPlus Emerging will offset losses from the drop in PortfolioPlus Emerging's long position.| ProShares vs. United States 12 | ProShares vs. Credit Suisse X Links | ProShares vs. Invesco DB Oil | ProShares vs. United States 12 |
| PortfolioPlus Emerging vs. Freedom Day Dividend | PortfolioPlus Emerging vs. iShares MSCI China | PortfolioPlus Emerging vs. iShares Dividend and | PortfolioPlus Emerging vs. SmartETFs Dividend Builder |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |