Correlation Between ProShares Pet and Global X
Can any of the company-specific risk be diversified away by investing in both ProShares Pet and Global X 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 Pet and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Pet Care and Global X Telemedicine, you can compare the effects of market volatilities on ProShares Pet and Global X 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 Pet with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Pet and Global X.
Diversification Opportunities for ProShares Pet and Global X
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProShares and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Pet Care and Global X Telemedicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Telemedicine and ProShares Pet 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 Pet Care are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Telemedicine has no effect on the direction of ProShares Pet i.e., ProShares Pet and Global X go up and down completely randomly.
Pair Corralation between ProShares Pet and Global X
Given the investment horizon of 90 days ProShares Pet is expected to generate 1.49 times less return on investment than Global X. In addition to that, ProShares Pet is 3.49 times more volatile than Global X Telemedicine. It trades about 0.11 of its total potential returns per unit of risk. Global X Telemedicine is currently generating about 0.58 per unit of volatility. If you would invest 938.00 in Global X Telemedicine on March 28, 2025 and sell it today you would earn a total of 7.00 from holding Global X Telemedicine or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.84% |
| Values | Daily Returns |
ProShares Pet Care vs. Global X Telemedicine
Performance |
| Timeline |
| ProShares Pet Care |
| Global X Telemedicine |
Risk-Adjusted Performance
Excellent
Weak | Strong |
ProShares Pet and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Pet and Global X
The main advantage of trading using opposite ProShares Pet and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Pet position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| ProShares Pet vs. ProShares Online Retail | ProShares Pet vs. VanEck Video Gaming | ProShares Pet vs. Renaissance IPO ETF | ProShares Pet vs. Invesco Dynamic Leisure |
| Global X vs. Global X E commerce | Global X vs. Global X Genomics | Global X vs. Global X Cloud | Global X vs. Global X FinTech |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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