Correlation Between ProShares and Themes Infrastructure
Can any of the company-specific risk be diversified away by investing in both ProShares and Themes Infrastructure 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 Themes Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares DJ Brookfield and Themes Infrastructure ETF, you can compare the effects of market volatilities on ProShares and Themes Infrastructure 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 Themes Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Themes Infrastructure.
Diversification Opportunities for ProShares and Themes Infrastructure
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and Themes is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ProShares DJ Brookfield and Themes Infrastructure ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Infrastructure ETF 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 DJ Brookfield are associated (or correlated) with Themes Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Infrastructure ETF has no effect on the direction of ProShares i.e., ProShares and Themes Infrastructure go up and down completely randomly.
Pair Corralation between ProShares and Themes Infrastructure
Given the investment horizon of 90 days ProShares is expected to generate 20.62 times less return on investment than Themes Infrastructure. But when comparing it to its historical volatility, ProShares DJ Brookfield is 1.63 times less risky than Themes Infrastructure. It trades about 0.02 of its potential returns per unit of risk. Themes Infrastructure ETF is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,655 in Themes Infrastructure ETF on June 2, 2025 and sell it today you would earn a total of 346.00 from holding Themes Infrastructure ETF or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares DJ Brookfield vs. Themes Infrastructure ETF
Performance |
| Timeline |
| ProShares DJ Brookfield |
| Themes Infrastructure ETF |
ProShares and Themes Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Themes Infrastructure
The main advantage of trading using opposite ProShares and Themes Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Themes Infrastructure 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 Themes Infrastructure will offset losses from the drop in Themes Infrastructure's long position.| ProShares vs. Global X Infrastructure | ProShares vs. iShares Global Infrastructure | ProShares vs. FlexShares STOXX Global | ProShares vs. iShares Infrastructure ETF |
| Themes Infrastructure vs. Heartland Express | Themes Infrastructure vs. Integra LifeSciences Holdings | Themes Infrastructure vs. ICU Medical | Themes Infrastructure vs. Safety Insurance Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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