Correlation Between ProShares and Qs Moderate
Can any of the company-specific risk be diversified away by investing in both ProShares and Qs Moderate 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 Qs Moderate 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 Qs Moderate Growth, you can compare the effects of market volatilities on ProShares and Qs Moderate 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 Qs Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Qs Moderate.
Diversification Opportunities for ProShares and Qs Moderate
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and SCGRX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP 500 and Qs Moderate Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Moderate Growth 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 Qs Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Moderate Growth has no effect on the direction of ProShares i.e., ProShares and Qs Moderate go up and down completely randomly.
Pair Corralation between ProShares and Qs Moderate
Given the investment horizon of 90 days ProShares SP 500 is expected to generate 0.81 times more return on investment than Qs Moderate. However, ProShares SP 500 is 1.23 times less risky than Qs Moderate. It trades about 0.26 of its potential returns per unit of risk. Qs Moderate Growth is currently generating about 0.11 per unit of risk. If you would invest 3,735 in ProShares SP 500 on April 12, 2025 and sell it today you would earn a total of 529.00 from holding ProShares SP 500 or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares SP 500 vs. Qs Moderate Growth
Performance |
| Timeline |
| ProShares SP 500 |
| Qs Moderate Growth |
ProShares and Qs Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Qs Moderate
The main advantage of trading using opposite ProShares and Qs Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Qs Moderate 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 Qs Moderate will offset losses from the drop in Qs Moderate's long position.| ProShares vs. FT Vest Equity | ProShares vs. Northern Lights | ProShares vs. Dimensional International High | ProShares vs. Matthews China Discovery |
| Qs Moderate vs. American Funds The | Qs Moderate vs. American Funds The | Qs Moderate vs. Income Fund Of | Qs Moderate vs. Income Fund Of |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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