Correlation Between Abrdn Bloomberg and ProShares

Can any of the company-specific risk be diversified away by investing in both Abrdn Bloomberg 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 Abrdn Bloomberg and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between abrdn Bloomberg All and ProShares, you can compare the effects of market volatilities on Abrdn Bloomberg 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 Abrdn Bloomberg with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Bloomberg and ProShares.

Diversification Opportunities for Abrdn Bloomberg and ProShares

0.0

Correlation Coefficient

Abrdn Bloomberg  ProShares

Pay attention - limited upside

The 3 months correlation between Abrdn and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Bloomberg All and ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares and Abrdn Bloomberg 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 abrdn Bloomberg All 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 Abrdn Bloomberg i.e., Abrdn Bloomberg and ProShares go up and down completely randomly.

Pair Corralation between Abrdn Bloomberg and ProShares

If you would invest  3,107  in abrdn Bloomberg All on December 27, 2024 and sell it today you would earn a total of  265.00  from holding abrdn Bloomberg All or generate 8.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

abrdn Bloomberg All  vs.  ProShares

abrdn Bloomberg All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Bloomberg All are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent fundamental indicators, Abrdn Bloomberg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ProShares

Risk-Adjusted Performance

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 latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Abrdn Bloomberg and ProShares

The main advantage of trading using opposite Abrdn Bloomberg and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Bloomberg 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 abrdn Bloomberg All 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.