Correlation Between ProShares Ultra and VIIX
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and VIIX 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 Ultra and VIIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Consumer and VIIX, you can compare the effects of market volatilities on ProShares Ultra and VIIX 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 Ultra with a short position of VIIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and VIIX.
Diversification Opportunities for ProShares Ultra and VIIX
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and VIIX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Consumer and VIIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIIX and ProShares Ultra 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 Ultra Consumer are associated (or correlated) with VIIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIIX has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and VIIX go up and down completely randomly.
Pair Corralation between ProShares Ultra and VIIX
If you would invest 1,543 in ProShares Ultra Consumer on September 19, 2024 and sell it today you would earn a total of 380.00 from holding ProShares Ultra Consumer or generate 24.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
ProShares Ultra Consumer vs. VIIX
Performance |
| Timeline |
| ProShares Ultra Consumer |
| VIIX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and VIIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and VIIX
The main advantage of trading using opposite ProShares Ultra and VIIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, VIIX 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 VIIX will offset losses from the drop in VIIX's long position.| ProShares Ultra vs. ProShares Ultra Consumer | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Utilities | ProShares Ultra vs. ProShares Ultra Health |
| VIIX vs. FT Vest Equity | VIIX vs. Zillow Group Class | VIIX vs. Northern Lights | VIIX vs. VanEck Vectors Moodys |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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