Correlation Between Founder Group and PROSHARES ULTRASHORT
Can any of the company-specific risk be diversified away by investing in both Founder Group and PROSHARES ULTRASHORT 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 Founder Group and PROSHARES ULTRASHORT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Founder Group Limited and PROSHARES ULTRASHORT RUSSELL, you can compare the effects of market volatilities on Founder Group and PROSHARES ULTRASHORT 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 Founder Group with a short position of PROSHARES ULTRASHORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Founder Group and PROSHARES ULTRASHORT.
Diversification Opportunities for Founder Group and PROSHARES ULTRASHORT
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Founder and PROSHARES is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Founder Group Limited and PROSHARES ULTRASHORT RUSSELL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROSHARES ULTRASHORT and Founder Group 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 Founder Group Limited are associated (or correlated) with PROSHARES ULTRASHORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROSHARES ULTRASHORT has no effect on the direction of Founder Group i.e., Founder Group and PROSHARES ULTRASHORT go up and down completely randomly.
Pair Corralation between Founder Group and PROSHARES ULTRASHORT
Considering the 90-day investment horizon Founder Group Limited is expected to generate 2.02 times more return on investment than PROSHARES ULTRASHORT. However, Founder Group is 2.02 times more volatile than PROSHARES ULTRASHORT RUSSELL. It trades about -0.04 of its potential returns per unit of risk. PROSHARES ULTRASHORT RUSSELL is currently generating about -0.1 per unit of risk. If you would invest 108.00 in Founder Group Limited on August 28, 2025 and sell it today you would lose (64.00) from holding Founder Group Limited or give up 59.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Founder Group Limited vs. PROSHARES ULTRASHORT RUSSELL
Performance |
| Timeline |
| Founder Group Limited |
| PROSHARES ULTRASHORT |
Founder Group and PROSHARES ULTRASHORT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Founder Group and PROSHARES ULTRASHORT
The main advantage of trading using opposite Founder Group and PROSHARES ULTRASHORT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Founder Group position performs unexpectedly, PROSHARES ULTRASHORT 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 ULTRASHORT will offset losses from the drop in PROSHARES ULTRASHORT's long position.| Founder Group vs. B Communications | Founder Group vs. Technology Telecommunication Acquisition | Founder Group vs. Fast Retailing Co | Founder Group vs. QKL Stores |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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