Correlation Between ProShares and Ab Tax
Can any of the company-specific risk be diversified away by investing in both ProShares and Ab Tax 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 Ab Tax 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 Ab Tax Aware Short, you can compare the effects of market volatilities on ProShares and Ab Tax 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 Ab Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Ab Tax.
Diversification Opportunities for ProShares and Ab Tax
Very weak diversification
The 3 months correlation between ProShares and TAFI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP 500 and Ab Tax Aware Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Tax Aware 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 Ab Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Tax Aware has no effect on the direction of ProShares i.e., ProShares and Ab Tax go up and down completely randomly.
Pair Corralation between ProShares and Ab Tax
Given the investment horizon of 90 days ProShares SP 500 is expected to generate 11.93 times more return on investment than Ab Tax. However, ProShares is 11.93 times more volatile than Ab Tax Aware Short. It trades about 0.1 of its potential returns per unit of risk. Ab Tax Aware Short is currently generating about 0.09 per unit of risk. If you would invest 4,511 in ProShares SP 500 on September 8, 2025 and sell it today you would earn a total of 70.00 from holding ProShares SP 500 or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares SP 500 vs. Ab Tax Aware Short
Performance |
| Timeline |
| ProShares SP 500 |
| Ab Tax Aware |
ProShares and Ab Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Ab Tax
The main advantage of trading using opposite ProShares and Ab Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Ab Tax 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 Ab Tax will offset losses from the drop in Ab Tax's long position.| ProShares vs. FT Vest Equity | ProShares vs. Northern Lights | ProShares vs. Diamond Hill Funds | ProShares vs. Dimensional International High |
| Ab Tax vs. Valued Advisers Trust | Ab Tax vs. Columbia Diversified Fixed | Ab Tax vs. Principal Exchange Traded Funds | Ab Tax vs. MFS Active Core |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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