Correlation Between ProShares Trust and Hashdex Nasdaq
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Hashdex Nasdaq 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 Hashdex Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Hashdex Nasdaq Crypto, you can compare the effects of market volatilities on ProShares Trust and Hashdex Nasdaq 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 Hashdex Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Hashdex Nasdaq.
Diversification Opportunities for ProShares Trust and Hashdex Nasdaq
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and Hashdex is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Hashdex Nasdaq Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashdex Nasdaq Crypto 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 Hashdex Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashdex Nasdaq Crypto has no effect on the direction of ProShares Trust i.e., ProShares Trust and Hashdex Nasdaq go up and down completely randomly.
Pair Corralation between ProShares Trust and Hashdex Nasdaq
Given the investment horizon of 90 days ProShares Trust is expected to generate 1.9 times more return on investment than Hashdex Nasdaq. However, ProShares Trust is 1.9 times more volatile than Hashdex Nasdaq Crypto. It trades about 0.08 of its potential returns per unit of risk. Hashdex Nasdaq Crypto is currently generating about 0.13 per unit of risk. If you would invest 3,731 in ProShares Trust on March 26, 2025 and sell it today you would earn a total of 731.00 from holding ProShares Trust or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Hashdex Nasdaq Crypto
Performance |
| Timeline |
| ProShares Trust |
| Hashdex Nasdaq Crypto |
ProShares Trust and Hashdex Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Hashdex Nasdaq
The main advantage of trading using opposite ProShares Trust and Hashdex Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Hashdex Nasdaq 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 Hashdex Nasdaq will offset losses from the drop in Hashdex Nasdaq's long position.| ProShares Trust vs. Grayscale Funds Trust | ProShares Trust vs. Hashdex Nasdaq Crypto | ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. ProShares Trust |
| Hashdex Nasdaq vs. Grayscale Funds Trust | Hashdex Nasdaq vs. ProShares Trust | Hashdex Nasdaq vs. iShares Ethereum Trust | Hashdex Nasdaq vs. ProShares Trust |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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