Correlation Between Boeing and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Boeing and ProShares Short 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 Boeing and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and ProShares Short SP500, you can compare the effects of market volatilities on Boeing and ProShares Short 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 Boeing with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and ProShares Short.
Diversification Opportunities for Boeing and ProShares Short
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Boeing and ProShares is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and ProShares Short SP500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short SP500 and Boeing 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 The Boeing are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short SP500 has no effect on the direction of Boeing i.e., Boeing and ProShares Short go up and down completely randomly.
Pair Corralation between Boeing and ProShares Short
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the ProShares Short. In addition to that, Boeing is 2.25 times more volatile than ProShares Short SP500. It trades about -0.19 of its total potential returns per unit of risk. ProShares Short SP500 is currently generating about -0.09 per unit of volatility. If you would invest 3,816 in ProShares Short SP500 on September 3, 2025 and sell it today you would lose (165.00) from holding ProShares Short SP500 or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. ProShares Short SP500
Performance |
| Timeline |
| Boeing |
| ProShares Short SP500 |
Boeing and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and ProShares Short
The main advantage of trading using opposite Boeing and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, ProShares Short 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 ProShares Short will offset losses from the drop in ProShares Short's long position.| Boeing vs. Shelf Drilling | Boeing vs. NorthPoint Communications Group | Boeing vs. T Mobile US, 5500 | Boeing vs. Precision Drilling |
| ProShares Short vs. FT Vest Equity | ProShares Short vs. Northern Lights | ProShares Short vs. Diamond Hill Funds | ProShares Short vs. Dimensional International High |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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