Correlation Between T Rowe and ProShares
Can any of the company-specific risk be diversified away by investing in both T Rowe 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 T Rowe and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rowe Price and ProShares SP 500, you can compare the effects of market volatilities on T Rowe 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 T Rowe with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rowe and ProShares.
Diversification Opportunities for T Rowe and ProShares
No risk reduction
The 3 months correlation between TTEQ and ProShares is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding T Rowe Price 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 T Rowe 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 T Rowe Price 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 T Rowe i.e., T Rowe and ProShares go up and down completely randomly.
Pair Corralation between T Rowe and ProShares
Given the investment horizon of 90 days T Rowe Price is expected to generate 1.43 times more return on investment than ProShares. However, T Rowe is 1.43 times more volatile than ProShares SP 500. It trades about 0.08 of its potential returns per unit of risk. ProShares SP 500 is currently generating about 0.06 per unit of risk. If you would invest 2,558 in T Rowe Price on August 3, 2025 and sell it today you would earn a total of 877.00 from holding T Rowe Price or generate 34.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rowe Price vs. ProShares SP 500
Performance |
| Timeline |
| T Rowe Price |
| ProShares SP 500 |
T Rowe and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rowe and ProShares
The main advantage of trading using opposite T Rowe and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rowe 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.| T Rowe vs. YieldMax Semiconductor Portfolio | T Rowe vs. GraniteShares ETF Trust | T Rowe vs. India Internet Ecommerce | T Rowe vs. Tema Monopolies and |
| ProShares vs. ProShares SP 500 | ProShares vs. Cohen Steers Real | ProShares vs. Tema Monopolies and | ProShares vs. Innovator ETFs Trust |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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