Correlation Between VanEck Vectors and ProShares Short
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and ProShares Short 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 VanEck Vectors and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors ETF and ProShares Short 7 10, you can compare the effects of market volatilities on VanEck Vectors and ProShares Short 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 VanEck Vectors with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and ProShares Short.
Diversification Opportunities for VanEck Vectors and ProShares Short
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and ProShares is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and ProShares Short 7 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short 7 and VanEck Vectors 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 VanEck Vectors ETF are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short 7 has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and ProShares Short go up and down completely randomly.
Pair Corralation between VanEck Vectors and ProShares Short
Considering the 90-day investment horizon VanEck Vectors ETF is expected to generate 0.68 times more return on investment than ProShares Short. However, VanEck Vectors ETF is 1.47 times less risky than ProShares Short. It trades about 0.17 of its potential returns per unit of risk. ProShares Short 7 10 is currently generating about -0.27 per unit of risk. If you would invest 4,592 in VanEck Vectors ETF on December 4, 2024 and sell it today you would earn a total of 42.00 from holding VanEck Vectors ETF or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors ETF vs. ProShares Short 7 10
Performance |
| Timeline |
| VanEck Vectors ETF |
| ProShares Short 7 |
VanEck Vectors and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and ProShares Short
The main advantage of trading using opposite VanEck Vectors and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, ProShares Short 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 Short will offset losses from the drop in ProShares Short's long position.| VanEck Vectors vs. Formidable Fortress ETF | ||
| VanEck Vectors vs. Sonida Senior Living | ||
| VanEck Vectors vs. China Yuchai International | ||
| VanEck Vectors vs. Nine Energy Service |
| ProShares Short vs. ProShares Short 20 | ||
| ProShares Short vs. ProShares Short High | ||
| ProShares Short vs. ProShares UltraShort 7 10 | ||
| ProShares Short vs. ProShares UltraPro Short |
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
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |