Correlation Between OShares Small and ProShares
Can any of the company-specific risk be diversified away by investing in both OShares Small and ProShares 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 OShares Small and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OShares Small Cap Quality and ProShares SP 500, you can compare the effects of market volatilities on OShares Small and ProShares 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 OShares Small with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of OShares Small and ProShares.
Diversification Opportunities for OShares Small and ProShares
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OShares and ProShares is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding OShares Small Cap Quality and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP 500 and OShares Small 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 OShares Small Cap Quality are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of OShares Small i.e., OShares Small and ProShares go up and down completely randomly.
Pair Corralation between OShares Small and ProShares
Given the investment horizon of 90 days OShares Small Cap Quality is expected to under-perform the ProShares. In addition to that, OShares Small is 1.13 times more volatile than ProShares SP 500. It trades about -0.07 of its total potential returns per unit of risk. ProShares SP 500 is currently generating about 0.08 per unit of volatility. If you would invest 4,287 in ProShares SP 500 on August 21, 2025 and sell it today you would earn a total of 152.00 from holding ProShares SP 500 or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OShares Small Cap Quality vs. ProShares SP 500
Performance |
| Timeline |
| OShares Small Cap |
| ProShares SP 500 |
OShares Small and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OShares Small and ProShares
The main advantage of trading using opposite OShares Small and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OShares Small position performs unexpectedly, ProShares 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 will offset losses from the drop in ProShares' long position.| OShares Small vs. OShares Quality Dividend | OShares Small vs. Invesco High Yield | OShares Small vs. iShares Asia 50 | OShares Small vs. iShares Energy ETF |
| ProShares vs. Innovator SP 500 | ProShares vs. Innovator SP 500 | ProShares vs. Innovator Equity Power | ProShares vs. FT Cboe Vest |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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