Correlation Between ProShares Metaverse and Roundhill Investments

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

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

Diversification Opportunities for ProShares Metaverse and Roundhill Investments

0.0

Correlation Coefficient

ProShares Metaverse  Roundhill Investments

Pay attention - limited upside

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

Pair Corralation between ProShares Metaverse and Roundhill Investments

If you would invest  4,127  in ProShares Metaverse ETF on September 4, 2024 and sell it today you would earn a total of  668.00  from holding ProShares Metaverse ETF or generate 16.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

ProShares Metaverse ETF  vs.  Roundhill Investments

ProShares Metaverse ETF

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Metaverse ETF are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ProShares Metaverse unveiled solid returns over the last few months and may actually be approaching a breakup point.

Roundhill Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Roundhill Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Roundhill Investments is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ProShares Metaverse and Roundhill Investments

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

The idea behind ProShares Metaverse ETF and Roundhill Investments 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.