Correlation Between IShares Expanded and ProShares Metaverse
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and ProShares Metaverse 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 IShares Expanded and ProShares Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Expanded Tech Software and ProShares Metaverse ETF, you can compare the effects of market volatilities on IShares Expanded and ProShares Metaverse 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 IShares Expanded with a short position of ProShares Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and ProShares Metaverse.
Diversification Opportunities for IShares Expanded and ProShares Metaverse
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and ProShares is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech Software and ProShares Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Metaverse ETF and IShares Expanded 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 iShares Expanded Tech Software are associated (or correlated) with ProShares Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Metaverse ETF has no effect on the direction of IShares Expanded i.e., IShares Expanded and ProShares Metaverse go up and down completely randomly.
Pair Corralation between IShares Expanded and ProShares Metaverse
Considering the 90-day investment horizon iShares Expanded Tech Software is expected to under-perform the ProShares Metaverse. But the etf apears to be less risky and, when comparing its historical volatility, iShares Expanded Tech Software is 1.43 times less risky than ProShares Metaverse. The etf trades about -0.02 of its potential returns per unit of risk. The ProShares Metaverse ETF is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,849 in ProShares Metaverse ETF on September 6, 2025 and sell it today you would earn a total of 367.00 from holding ProShares Metaverse ETF or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Expanded Tech Software vs. ProShares Metaverse ETF
Performance |
| Timeline |
| iShares Expanded Tech |
| ProShares Metaverse ETF |
IShares Expanded and ProShares Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Expanded and ProShares Metaverse
The main advantage of trading using opposite IShares Expanded and ProShares Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, ProShares Metaverse 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 Metaverse will offset losses from the drop in ProShares Metaverse's long position.| IShares Expanded vs. First Trust Technology | IShares Expanded vs. Fidelity MSCI Information | IShares Expanded vs. First Trust Nasdaq | IShares Expanded vs. iShares Global Tech |
| ProShares Metaverse vs. Strategy Shares | ProShares Metaverse vs. Freedom Day Dividend | ProShares Metaverse vs. Franklin Templeton ETF | ProShares Metaverse vs. iShares MSCI China |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |