Correlation Between ProShares and Invesco QQQ

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ProShares and Invesco QQQ 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 Invesco QQQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares and Invesco QQQ Trust, you can compare the effects of market volatilities on ProShares and Invesco QQQ 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 Invesco QQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Invesco QQQ.

Diversification Opportunities for ProShares and Invesco QQQ

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ProShares and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares and Invesco QQQ Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco QQQ Trust 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 Invesco QQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco QQQ Trust has no effect on the direction of ProShares i.e., ProShares and Invesco QQQ go up and down completely randomly.

Pair Corralation between ProShares and Invesco QQQ

If you would invest  43,702  in Invesco QQQ Trust on December 29, 2023 and sell it today you would earn a total of  781.00  from holding Invesco QQQ Trust or generate 1.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

ProShares  vs.  Invesco QQQ Trust

 Performance 
       Timeline  
ProShares 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days ProShares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, ProShares is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Invesco QQQ Trust 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco QQQ Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Invesco QQQ may actually be approaching a critical reversion point that can send shares even higher in April 2024.

ProShares and Invesco QQQ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares and Invesco QQQ

The main advantage of trading using opposite ProShares and Invesco QQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Invesco QQQ 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 Invesco QQQ will offset losses from the drop in Invesco QQQ's long position.
The idea behind ProShares and Invesco QQQ Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio