Correlation Between ProShares Trust and 21shares Core

Can any of the company-specific risk be diversified away by investing in both ProShares Trust and 21shares Core 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 21shares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Trust and 21shares Core Ethereum, you can compare the effects of market volatilities on ProShares Trust and 21shares Core 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 21shares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and 21shares Core.

Diversification Opportunities for ProShares Trust and 21shares Core

-0.95

Correlation Coefficient

ProShares Trust  21shares Core

Pay attention - limited upside

The 3 months correlation between ProShares and 21shares is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and 21shares Core Ethereum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21shares Core Ethereum 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 21shares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21shares Core Ethereum has no effect on the direction of ProShares Trust i.e., ProShares Trust and 21shares Core go up and down completely randomly.

Pair Corralation between ProShares Trust and 21shares Core

Given the investment horizon of 90 days ProShares Trust is expected to under-perform the 21shares Core. In addition to that, ProShares Trust is 1.97 times more volatile than 21shares Core Ethereum. It trades about -0.12 of its total potential returns per unit of risk. 21shares Core Ethereum is currently generating about 0.12 per unit of volatility. If you would invest  1,236  in 21shares Core Ethereum on October 25, 2024 and sell it today you would earn a total of  389.00  from holding 21shares Core Ethereum or generate 31.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ProShares Trust  vs.  21shares Core Ethereum

ProShares Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProShares Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Etf's technical indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

21shares Core Ethereum

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 21shares Core Ethereum are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, 21shares Core demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProShares Trust and 21shares Core

The main advantage of trading using opposite ProShares Trust and 21shares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, 21shares Core 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 21shares Core will offset losses from the drop in 21shares Core's long position.

The idea behind ProShares Trust and 21shares Core Ethereum 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.