Correlation Between ProShares Trust and 3D Printing
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and 3D Printing 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 3D Printing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and The 3D Printing, you can compare the effects of market volatilities on ProShares Trust and 3D Printing 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 3D Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and 3D Printing.
Diversification Opportunities for ProShares Trust and 3D Printing
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and PRNT is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and The 3D Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Printing 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 3D Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Printing has no effect on the direction of ProShares Trust i.e., ProShares Trust and 3D Printing go up and down completely randomly.
Pair Corralation between ProShares Trust and 3D Printing
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the 3D Printing. In addition to that, ProShares Trust is 2.68 times more volatile than The 3D Printing. It trades about -0.2 of its total potential returns per unit of risk. The 3D Printing is currently generating about 0.07 per unit of volatility. If you would invest 2,026 in The 3D Printing on October 20, 2024 and sell it today you would earn a total of 102.00 from holding The 3D Printing or generate 5.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ProShares Trust vs. The 3D Printing
Performance |
Timeline |
ProShares Trust |
3D Printing |
ProShares Trust and 3D Printing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares Trust and 3D Printing
The main advantage of trading using opposite ProShares Trust and 3D Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, 3D Printing 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 3D Printing will offset losses from the drop in 3D Printing's long position.ProShares Trust vs. AXS TSLA Bear | ProShares Trust vs. Tuttle Capital Short | ProShares Trust vs. ProShares Bitcoin Strategy | ProShares Trust vs. ProShares UltraShort Bloomberg |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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