Correlation Between AGND and ProShares Inflation
Can any of the company-specific risk be diversified away by investing in both AGND 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 AGND and ProShares Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGND and ProShares Inflation Expectations, you can compare the effects of market volatilities on AGND 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 AGND with a short position of ProShares Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGND and ProShares Inflation.
Diversification Opportunities for AGND and ProShares Inflation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGND and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGND and ProShares Inflation Expectatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Inflation and AGND 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 AGND 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 AGND i.e., AGND and ProShares Inflation go up and down completely randomly.
Pair Corralation between AGND and ProShares Inflation
If you would invest 3,223 in ProShares Inflation Expectations on January 26, 2024 and sell it today you would earn a total of 96.00 from holding ProShares Inflation Expectations or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGND vs. ProShares Inflation Expectatio
Performance |
| Timeline |
| AGND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Inflation |
AGND and ProShares Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGND and ProShares Inflation
The main advantage of trading using opposite AGND and ProShares Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGND 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.The idea behind AGND and ProShares Inflation Expectations pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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