Correlation Between ProShares Long and Trust For

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

By analyzing existing cross correlation between ProShares Long OnlineShort and Trust For Professional, you can compare the effects of market volatilities on ProShares Long and Trust For 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 Long with a short position of Trust For. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Long and Trust For.

Diversification Opportunities for ProShares Long and Trust For

0.41

Correlation Coefficient

ProShares Long  Trust For

Very weak diversification

The 3 months correlation between ProShares and Trust is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Long OnlineShort and Trust For Professional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust For Professional and ProShares Long 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 Long OnlineShort are associated (or correlated) with Trust For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust For Professional has no effect on the direction of ProShares Long i.e., ProShares Long and Trust For go up and down completely randomly.

Pair Corralation between ProShares Long and Trust For

Given the investment horizon of 90 days ProShares Long OnlineShort is expected to generate 1.57 times more return on investment than Trust For. However, ProShares Long is 1.57 times more volatile than Trust For Professional. It trades about 0.24 of its potential returns per unit of risk. Trust For Professional is currently generating about 0.17 per unit of risk. If you would invest  4,903  in ProShares Long OnlineShort on May 18, 2025 and sell it today you would earn a total of  782.00  from holding ProShares Long OnlineShort or generate 15.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ProShares Long OnlineShort  vs.  Trust For Professional

ProShares Long Onlin

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Long OnlineShort are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, ProShares Long showed solid returns over the last few months and may actually be approaching a breakup point.

Trust For Professional

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Trust For Professional are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Trust For may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ProShares Long and Trust For

The main advantage of trading using opposite ProShares Long and Trust For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Long position performs unexpectedly, Trust For 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 Trust For will offset losses from the drop in Trust For's long position.

The idea behind ProShares Long OnlineShort and Trust For Professional 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.

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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.