Correlation Between Haemonetics and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both Haemonetics and ProShares UltraShort 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 Haemonetics and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and ProShares UltraShort SmallCap600, you can compare the effects of market volatilities on Haemonetics and ProShares UltraShort 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 Haemonetics with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and ProShares UltraShort.
Diversification Opportunities for Haemonetics and ProShares UltraShort
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Haemonetics and ProShares is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and ProShares UltraShort SmallCap6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and Haemonetics 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 Haemonetics are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of Haemonetics i.e., Haemonetics and ProShares UltraShort go up and down completely randomly.
Pair Corralation between Haemonetics and ProShares UltraShort
Considering the 90-day investment horizon Haemonetics is expected to generate 0.7 times more return on investment than ProShares UltraShort. However, Haemonetics is 1.42 times less risky than ProShares UltraShort. It trades about 0.24 of its potential returns per unit of risk. ProShares UltraShort SmallCap600 is currently generating about 0.14 per unit of risk. If you would invest 8,479 in Haemonetics on January 31, 2024 and sell it today you would earn a total of 671.00 from holding Haemonetics or generate 7.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Haemonetics vs. ProShares UltraShort SmallCap6
Performance |
Timeline |
Haemonetics |
ProShares UltraShort |
Haemonetics and ProShares UltraShort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haemonetics and ProShares UltraShort
The main advantage of trading using opposite Haemonetics and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics position performs unexpectedly, ProShares UltraShort 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 UltraShort will offset losses from the drop in ProShares UltraShort's long position.Haemonetics vs. Novo Integrated Sciences | Haemonetics vs. HCA Holdings | Haemonetics vs. Acadia Healthcare | Haemonetics vs. Pennant Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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