Correlation Between ProShares Short and 50249AAJ2
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By analyzing existing cross correlation between ProShares Short 7 10 and LYB INTERNATIONAL FINANCE, you can compare the effects of market volatilities on ProShares Short and 50249AAJ2 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 Short with a short position of 50249AAJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and 50249AAJ2.
Diversification Opportunities for ProShares Short and 50249AAJ2
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and 50249AAJ2 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short 7 10 and LYB INTERNATIONAL FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB INTERNATIONAL FINANCE and ProShares Short 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 Short 7 10 are associated (or correlated) with 50249AAJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB INTERNATIONAL FINANCE has no effect on the direction of ProShares Short i.e., ProShares Short and 50249AAJ2 go up and down completely randomly.
Pair Corralation between ProShares Short and 50249AAJ2
Considering the 90-day investment horizon ProShares Short is expected to generate 6.46 times less return on investment than 50249AAJ2. But when comparing it to its historical volatility, ProShares Short 7 10 is 2.58 times less risky than 50249AAJ2. It trades about 0.02 of its potential returns per unit of risk. LYB INTERNATIONAL FINANCE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,767 in LYB INTERNATIONAL FINANCE on September 24, 2024 and sell it today you would earn a total of 602.00 from holding LYB INTERNATIONAL FINANCE or generate 8.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.39% |
Values | Daily Returns |
ProShares Short 7 10 vs. LYB INTERNATIONAL FINANCE
Performance |
Timeline |
ProShares Short 7 |
LYB INTERNATIONAL FINANCE |
ProShares Short and 50249AAJ2 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares Short and 50249AAJ2
The main advantage of trading using opposite ProShares Short and 50249AAJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short position performs unexpectedly, 50249AAJ2 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 50249AAJ2 will offset losses from the drop in 50249AAJ2's long position.ProShares Short vs. Direxion Daily 7 10 | ProShares Short vs. Direxion Daily 20 | ProShares Short vs. Direxion Daily 7 10 | ProShares Short vs. Direxion Daily MSCI |
50249AAJ2 vs. Lion One Metals | 50249AAJ2 vs. Biglari Holdings | 50249AAJ2 vs. Shake Shack | 50249AAJ2 vs. Yuexiu Transport Infrastructure |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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