Correlation Between ProShares Trust and 1125 GENEVE

Can any of the company-specific risk be diversified away by investing in both ProShares Trust and 1125 GENEVE 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 Trust and 1125 GENEVE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Trust and 1125 GENEVE 23, you can compare the effects of market volatilities on ProShares Trust and 1125 GENEVE 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 Trust with a short position of 1125 GENEVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and 1125 GENEVE.

Diversification Opportunities for ProShares Trust and 1125 GENEVE

0.0

Correlation Coefficient

ProShares Trust  1125 GENEVE

Pay attention - limited upside

The 3 months correlation between ProShares and 1125 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and 1125 GENEVE 23 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1125 GENEVE 23 and ProShares Trust 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 Trust are associated (or correlated) with 1125 GENEVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1125 GENEVE 23 has no effect on the direction of ProShares Trust i.e., ProShares Trust and 1125 GENEVE go up and down completely randomly.

Pair Corralation between ProShares Trust and 1125 GENEVE

If you would invest (100.00) in 1125 GENEVE 23 on October 4, 2024 and sell it today you would earn a total of  100.00  from holding 1125 GENEVE 23 or generate -100.0% return on investment over 90 days.

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

ProShares Trust  vs.  1125 GENEVE 23

ProShares Trust

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, ProShares Trust exhibited solid returns over the last few months and may actually be approaching a breakup point.

1125 GENEVE 23

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1125 GENEVE 23 has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 1125 GENEVE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares Trust and 1125 GENEVE

The main advantage of trading using opposite ProShares Trust and 1125 GENEVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, 1125 GENEVE 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 1125 GENEVE will offset losses from the drop in 1125 GENEVE's long position.

The idea behind ProShares Trust and 1125 GENEVE 23 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.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.