This module allows you to analyze existing cross correlation between Crude Oil Strategy Proshares and United States Oil. You can compare the effects of market volatilities on Crude Oil and United States 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 Crude Oil with a short position of United States. See also your portfolio center
. Please also check ongoing floating volatility patterns of Crude Oil
and United States
Crude Oil Strategy Proshares vs United States Oil
Given the investment horizon of 30 days, Crude Oil Strategy Proshares is expected to generate 1.02 times more return on investment than United States. However, Crude Oil is 1.02 times more volatile than United States Oil. It trades about -0.08 of its potential returns per unit of risk. United States Oil is currently generating about -0.1 per unit of risk. If you would invest 2,342 in Crude Oil Strategy Proshares on January 24, 2018 and sell it today you would lose (72.00) from holding Crude Oil Strategy Proshares or give up 3.07% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Crude Oil Strategy Proshares and United States Oil in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on United States Oil and Crude Oil 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 Crude Oil Strategy Proshares are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Oil has no effect on the direction of Crude Oil i.e. Crude Oil and United States go up and down completely randomly.
Over the last 30 days Crude Oil Strategy Proshares has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days United States Oil has generated negative risk-adjusted returns adding no value to investors with long positions.