Correlation Between SPDR Barclays and ProShares Long
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays 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 SPDR Barclays and ProShares Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Intermediate and ProShares Long OnlineShort, you can compare the effects of market volatilities on SPDR Barclays 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 SPDR Barclays with a short position of ProShares Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and ProShares Long.
Diversification Opportunities for SPDR Barclays and ProShares Long
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and ProShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate 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 SPDR Barclays 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 SPDR Barclays Intermediate 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 SPDR Barclays i.e., SPDR Barclays and ProShares Long go up and down completely randomly.
Pair Corralation between SPDR Barclays and ProShares Long
Given the investment horizon of 90 days SPDR Barclays is expected to generate 9.09 times less return on investment than ProShares Long. But when comparing it to its historical volatility, SPDR Barclays Intermediate is 4.74 times less risky than ProShares Long. It trades about 0.19 of its potential returns per unit of risk. ProShares Long OnlineShort is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 4,460 in ProShares Long OnlineShort on April 24, 2025 and sell it today you would earn a total of 970.00 from holding ProShares Long OnlineShort or generate 21.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.39% |
Values | Daily Returns |
SPDR Barclays Intermediate vs. ProShares Long OnlineShort
Performance |
Timeline |
SPDR Barclays Interm |
ProShares Long Onlin |
SPDR Barclays and ProShares Long Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Barclays and ProShares Long
The main advantage of trading using opposite SPDR Barclays and ProShares Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays 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.SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. SPDR Bloomberg Emerging | SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Barclays Short |
ProShares Long vs. ProShares Online Retail | ProShares Long vs. Amplify Online Retail | ProShares Long vs. ProShares Decline of | ProShares Long vs. Global X E commerce |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |