Correlation Between ProShares Global and Invesco

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

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

Diversification Opportunities for ProShares Global and Invesco

0.35

Correlation Coefficient

ProShares Global  Invesco

Weak diversification

The 3 months correlation between ProShares and Invesco is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Global Listed and Invesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco and ProShares Global 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 Global Listed are associated (or correlated) with Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco has no effect on the direction of ProShares Global i.e., ProShares Global and Invesco go up and down completely randomly.

Pair Corralation between ProShares Global and Invesco

If you would invest  2,751  in ProShares Global Listed on September 4, 2024 and sell it today you would earn a total of  142.00  from holding ProShares Global Listed or generate 5.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

ProShares Global Listed  vs.  Invesco

ProShares Global Listed

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Global Listed are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, ProShares Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Invesco

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Invesco has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Invesco is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ProShares Global and Invesco

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

The idea behind ProShares Global Listed and Invesco 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..