Correlation Between Tidal ETF and ProShares Long

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

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

Diversification Opportunities for Tidal ETF and ProShares Long

0.89

Correlation Coefficient

Tidal ETF  ProShares Long

Very poor diversification

The 3 months correlation between Tidal and ProShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tidal ETF Trust and ProShares Long OnlineShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Long Onlin 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 Trust are associated (or correlated) with ProShares Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Long Onlin has no effect on the direction of Tidal ETF i.e., Tidal ETF and ProShares Long go up and down completely randomly.

Pair Corralation between Tidal ETF and ProShares Long

Given the investment horizon of 90 days Tidal ETF is expected to generate 3.22 times less return on investment than ProShares Long. But when comparing it to its historical volatility, Tidal ETF Trust is 2.48 times less risky than ProShares Long. It trades about 0.18 of its potential returns per unit of risk. ProShares Long OnlineShort is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  4,903  in ProShares Long OnlineShort on May 19, 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	Strong
Accuracy	100.0%
Values	Daily Returns

Tidal ETF Trust  vs.  ProShares Long OnlineShort

Tidal ETF Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal ETF Trust are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Tidal ETF is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with Tidal ETF and ProShares Long

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

The idea behind Tidal ETF Trust and ProShares Long OnlineShort 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.