Correlation Between ProShares Merger and ProShares Inflation
Can any of the company-specific risk be diversified away by investing in both ProShares Merger and ProShares Inflation 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 Merger and ProShares Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Merger ETF and ProShares Inflation Expectations, you can compare the effects of market volatilities on ProShares Merger and ProShares Inflation 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 Merger with a short position of ProShares Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Merger and ProShares Inflation.
Diversification Opportunities for ProShares Merger and ProShares Inflation
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ProShares and ProShares is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Merger ETF and ProShares Inflation Expectatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Inflation and ProShares Merger 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 Merger ETF are associated (or correlated) with ProShares Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Inflation has no effect on the direction of ProShares Merger i.e., ProShares Merger and ProShares Inflation go up and down completely randomly.
Pair Corralation between ProShares Merger and ProShares Inflation
Given the investment horizon of 90 days ProShares Merger ETF is expected to generate 0.43 times more return on investment than ProShares Inflation. However, ProShares Merger ETF is 2.31 times less risky than ProShares Inflation. It trades about 0.29 of its potential returns per unit of risk. ProShares Inflation Expectations is currently generating about 0.05 per unit of risk. If you would invest 4,181 in ProShares Merger ETF on May 29, 2025 and sell it today you would earn a total of 123.00 from holding ProShares Merger ETF or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Merger ETF vs. ProShares Inflation Expectatio
Performance |
| Timeline |
| ProShares Merger ETF |
| ProShares Inflation |
ProShares Merger and ProShares Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Merger and ProShares Inflation
The main advantage of trading using opposite ProShares Merger and ProShares Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Merger position performs unexpectedly, ProShares Inflation 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 Inflation will offset losses from the drop in ProShares Inflation's long position.| ProShares Merger vs. ProShares Hedge Replication | ProShares Merger vs. IQ Merger Arbitrage | ProShares Merger vs. ProShares Global Listed | ProShares Merger vs. ProShares Investment GradeInterest |
| ProShares Inflation vs. FolioBeyond Rising Rates | ProShares Inflation vs. Starboard Investment Trust | ProShares Inflation vs. SSGA Active Trust | ProShares Inflation vs. Virtus Private Credit |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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