Correlation Between IHS Holding and ProShares Hedge
Can any of the company-specific risk be diversified away by investing in both IHS Holding and ProShares Hedge 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 IHS Holding and ProShares Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHS Holding and ProShares Hedge Replication, you can compare the effects of market volatilities on IHS Holding and ProShares Hedge 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 IHS Holding with a short position of ProShares Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and ProShares Hedge.
Diversification Opportunities for IHS Holding and ProShares Hedge
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IHS and ProShares is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and ProShares Hedge Replication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Hedge Repl and IHS Holding 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 IHS Holding are associated (or correlated) with ProShares Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Hedge Repl has no effect on the direction of IHS Holding i.e., IHS Holding and ProShares Hedge go up and down completely randomly.
Pair Corralation between IHS Holding and ProShares Hedge
Considering the 90-day investment horizon IHS Holding is expected to generate 13.62 times more return on investment than ProShares Hedge. However, IHS Holding is 13.62 times more volatile than ProShares Hedge Replication. It trades about 0.14 of its potential returns per unit of risk. ProShares Hedge Replication is currently generating about 0.2 per unit of risk. If you would invest 563.00 in IHS Holding on June 3, 2025 and sell it today you would earn a total of 162.00 from holding IHS Holding or generate 28.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHS Holding vs. ProShares Hedge Replication
Performance |
| Timeline |
| IHS Holding |
| ProShares Hedge Repl |
IHS Holding and ProShares Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHS Holding and ProShares Hedge
The main advantage of trading using opposite IHS Holding and ProShares Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding position performs unexpectedly, ProShares Hedge 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 Hedge will offset losses from the drop in ProShares Hedge's long position.| IHS Holding vs. Cogent Communications Group | IHS Holding vs. IDT Corporation | IHS Holding vs. Iridium Communications | IHS Holding vs. Cable One |
| ProShares Hedge vs. Anfield Universal Fixed | ProShares Hedge vs. Anfield Equity Sector | ProShares Hedge vs. Morningstar Unconstrained Allocation | ProShares Hedge vs. Thrivent High Yield |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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