Correlation Between ProShares Big and Direxion Auspice

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

By analyzing existing cross correlation between ProShares Big Data and Direxion Auspice Broad, you can compare the effects of market volatilities on ProShares Big and Direxion Auspice 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 Big with a short position of Direxion Auspice. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Big and Direxion Auspice.

Diversification Opportunities for ProShares Big and Direxion Auspice

0.0

Correlation Coefficient

ProShares Big  Direxion Auspice

Pay attention - limited upside

The 3 months correlation between ProShares and Direxion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Big Data and Direxion Auspice Broad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Auspice Broad and ProShares Big 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 Big Data are associated (or correlated) with Direxion Auspice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Auspice Broad has no effect on the direction of ProShares Big i.e., ProShares Big and Direxion Auspice go up and down completely randomly.

Pair Corralation between ProShares Big and Direxion Auspice

Considering the 90-day investment horizon ProShares Big Data is expected to generate 2.83 times more return on investment than Direxion Auspice. However, ProShares Big is 2.83 times more volatile than Direxion Auspice Broad. It trades about 0.21 of its potential returns per unit of risk. Direxion Auspice Broad is currently generating about 0.03 per unit of risk. If you would invest  4,091  in ProShares Big Data on April 30, 2025 and sell it today you would earn a total of  630.50  from holding ProShares Big Data or generate 15.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

ProShares Big Data  vs.  Direxion Auspice Broad

ProShares Big Data

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Big Data are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ProShares Big unveiled solid returns over the last few months and may actually be approaching a breakup point.

Direxion Auspice Broad

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Direxion Auspice Broad are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Direxion Auspice is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ProShares Big and Direxion Auspice

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

The idea behind ProShares Big Data and Direxion Auspice Broad 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.