Correlation Between Symbotic and ProShares Trust

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

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

Diversification Opportunities for Symbotic and ProShares Trust

0.79

Correlation Coefficient

Symbotic  ProShares Trust

Poor diversification

The 3 months correlation between Symbotic and ProShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Symbotic and ProShares Trust ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust ProShares and Symbotic 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 Symbotic are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust ProShares has no effect on the direction of Symbotic i.e., Symbotic and ProShares Trust go up and down completely randomly.

Pair Corralation between Symbotic and ProShares Trust

Considering the 90-day investment horizon Symbotic is expected to generate 15.58 times more return on investment than ProShares Trust. However, Symbotic is 15.58 times more volatile than ProShares Trust ProShares. It trades about 0.28 of its potential returns per unit of risk. ProShares Trust ProShares is currently generating about 0.11 per unit of risk. If you would invest  2,294  in Symbotic on May 4, 2025 and sell it today you would earn a total of  2,791  from holding Symbotic or generate 121.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	41.94%
Values	Daily Returns

Symbotic  vs.  ProShares Trust ProShares

Symbotic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Symbotic are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Symbotic displayed solid returns over the last few months and may actually be approaching a breakup point.

ProShares Trust ProShares

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Trust ProShares are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, ProShares Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Symbotic and ProShares Trust

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

The idea behind Symbotic and ProShares Trust ProShares 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.