Correlation Between Tidal ETF and ProShares

Can any of the company-specific risk be diversified away by investing in both Tidal ETF 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 Tidal ETF and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tidal ETF Services and ProShares SP 500, you can compare the effects of market volatilities on Tidal ETF 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 Tidal ETF with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal ETF and ProShares.

Diversification Opportunities for Tidal ETF and ProShares

0.65

Correlation Coefficient

Tidal ETF  ProShares

Poor diversification

The 3 months correlation between Tidal and ProShares is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tidal ETF Services 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 Tidal ETF 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 Tidal ETF Services 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 Tidal ETF i.e., Tidal ETF and ProShares go up and down completely randomly.

Pair Corralation between Tidal ETF and ProShares

If you would invest  3,963  in ProShares SP 500 on May 21, 2025 and sell it today you would earn a total of  410.00  from holding ProShares SP 500 or generate 10.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.64%
Values	Daily Returns

Tidal ETF Services  vs.  ProShares SP 500

Tidal ETF Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Tidal ETF Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Tidal ETF is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

ProShares SP 500

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares SP 500 are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, ProShares may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tidal ETF and ProShares

The main advantage of trading using opposite Tidal ETF and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal ETF 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.

The idea behind Tidal ETF Services and ProShares SP 500 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.