Correlation Between ProShares Short and ABIVAX Socit

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

By analyzing existing cross correlation between ProShares Short SP500 and ABIVAX Socit Anonyme, you can compare the effects of market volatilities on ProShares Short and ABIVAX Socit 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 Short with a short position of ABIVAX Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and ABIVAX Socit.

Diversification Opportunities for ProShares Short and ABIVAX Socit

0.0

Correlation Coefficient

ProShares Short  ABIVAX Socit

Pay attention - limited upside

The 3 months correlation between ProShares and ABIVAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short SP500 and ABIVAX Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABIVAX Socit Anonyme and ProShares Short 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 Short SP500 are associated (or correlated) with ABIVAX Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABIVAX Socit Anonyme has no effect on the direction of ProShares Short i.e., ProShares Short and ABIVAX Socit go up and down completely randomly.

Pair Corralation between ProShares Short and ABIVAX Socit

Allowing for the 90-day total investment horizon ProShares Short SP500 is expected to under-perform the ABIVAX Socit. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Short SP500 is 6.9 times less risky than ABIVAX Socit. The etf trades about -0.06 of its potential returns per unit of risk. The ABIVAX Socit Anonyme is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  790.00  in ABIVAX Socit Anonyme on August 23, 2024 and sell it today you would earn a total of  315.00  from holding ABIVAX Socit Anonyme or generate 39.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

ProShares Short SP500  vs.  ABIVAX Socit Anonyme

ProShares Short SP500

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProShares Short SP500 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, ProShares Short is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

ABIVAX Socit Anonyme

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ABIVAX Socit Anonyme has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ABIVAX Socit is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ProShares Short and ABIVAX Socit

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

The idea behind ProShares Short SP500 and ABIVAX Socit Anonyme 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.