Correlation Between SPDR Barclays and ProShares

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

Diversification Opportunities for SPDR Barclays and ProShares

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between SPDR Barclays and ProShares

If you would invest  3,255  in SPDR Barclays Intermediate on December 29, 2023 and sell it today you would earn a total of  18.00  from holding SPDR Barclays Intermediate or generate 0.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SPDR Barclays Intermediate  vs.  ProShares

 Performance 
       Timeline  
SPDR Barclays Interm 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Barclays Intermediate are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, SPDR Barclays is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
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.

SPDR Barclays and ProShares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SPDR Barclays and ProShares

The main advantage of trading using opposite SPDR Barclays and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.
The idea behind SPDR Barclays Intermediate and ProShares 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Stocks Directory
Find actively traded stocks across global markets
Technical Analysis
Check basic technical indicators and analysis based on most latest market data