Correlation Between ProShares VIX and DSJA
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and DSJA 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 VIX and DSJA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares VIX Short Term and DSJA, you can compare the effects of market volatilities on ProShares VIX and DSJA 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 VIX with a short position of DSJA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and DSJA.
Diversification Opportunities for ProShares VIX and DSJA
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and DSJA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and DSJA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSJA and ProShares VIX 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 VIX Short Term are associated (or correlated) with DSJA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSJA has no effect on the direction of ProShares VIX i.e., ProShares VIX and DSJA go up and down completely randomly.
Pair Corralation between ProShares VIX and DSJA
If you would invest 2,865 in DSJA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding DSJA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ProShares VIX Short Term vs. DSJA
Performance |
| Timeline |
| ProShares VIX Short |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares VIX and DSJA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and DSJA
The main advantage of trading using opposite ProShares VIX and DSJA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, DSJA 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 DSJA will offset losses from the drop in DSJA's long position.| ProShares VIX vs. ProShares VIX Mid Term | ProShares VIX vs. iPath Series B | ProShares VIX vs. ProShares Short Russell2000 |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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