Correlation Between ProShares and JPMorgan BetaBuilders
Can any of the company-specific risk be diversified away by investing in both ProShares and JPMorgan BetaBuilders 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 and JPMorgan BetaBuilders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP 500 and JPMorgan BetaBuilders MSCI, you can compare the effects of market volatilities on ProShares and JPMorgan BetaBuilders 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 with a short position of JPMorgan BetaBuilders. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and JPMorgan BetaBuilders.
Diversification Opportunities for ProShares and JPMorgan BetaBuilders
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ProShares and JPMorgan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP 500 and JPMorgan BetaBuilders MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan BetaBuilders and ProShares 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 SP 500 are associated (or correlated) with JPMorgan BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan BetaBuilders has no effect on the direction of ProShares i.e., ProShares and JPMorgan BetaBuilders go up and down completely randomly.
Pair Corralation between ProShares and JPMorgan BetaBuilders
Given the investment horizon of 90 days ProShares SP 500 is expected to generate 0.8 times more return on investment than JPMorgan BetaBuilders. However, ProShares SP 500 is 1.25 times less risky than JPMorgan BetaBuilders. It trades about 0.16 of its potential returns per unit of risk. JPMorgan BetaBuilders MSCI is currently generating about 0.04 per unit of risk. If you would invest 3,973 in ProShares SP 500 on August 28, 2025 and sell it today you would earn a total of 557.00 from holding ProShares SP 500 or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares SP 500 vs. JPMorgan BetaBuilders MSCI
Performance |
| Timeline |
| ProShares SP 500 |
| JPMorgan BetaBuilders |
ProShares and JPMorgan BetaBuilders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and JPMorgan BetaBuilders
The main advantage of trading using opposite ProShares and JPMorgan BetaBuilders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, JPMorgan BetaBuilders 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 JPMorgan BetaBuilders will offset losses from the drop in JPMorgan BetaBuilders' long position.| ProShares vs. FT Vest Equity | ProShares vs. Northern Lights | ProShares vs. Diamond Hill Funds | ProShares vs. Dimensional International High |
| JPMorgan BetaBuilders vs. Vert Global Sustainable | JPMorgan BetaBuilders vs. First Trust Exchange Traded | JPMorgan BetaBuilders vs. VanEck Mortgage REIT | JPMorgan BetaBuilders vs. Vanguard Global ex US |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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