Correlation Between ProShares Trust and Invesco High
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Invesco High 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 Trust and Invesco High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Invesco High Yield, you can compare the effects of market volatilities on ProShares Trust and Invesco High 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 Trust with a short position of Invesco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Invesco High.
Diversification Opportunities for ProShares Trust and Invesco High
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and Invesco is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Invesco High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Yield and ProShares Trust 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 Trust are associated (or correlated) with Invesco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Yield has no effect on the direction of ProShares Trust i.e., ProShares Trust and Invesco High go up and down completely randomly.
Pair Corralation between ProShares Trust and Invesco High
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the Invesco High. In addition to that, ProShares Trust is 6.0 times more volatile than Invesco High Yield. It trades about -0.11 of its total potential returns per unit of risk. Invesco High Yield is currently generating about -0.06 per unit of volatility. If you would invest 2,119 in Invesco High Yield on August 29, 2025 and sell it today you would lose (69.00) from holding Invesco High Yield or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Invesco High Yield
Performance |
| Timeline |
| ProShares Trust |
| Invesco High Yield |
ProShares Trust and Invesco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Invesco High
The main advantage of trading using opposite ProShares Trust and Invesco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Invesco High 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 Invesco High will offset losses from the drop in Invesco High's long position.| ProShares Trust vs. DOJE | ProShares Trust vs. Grayscale Funds Trust | ProShares Trust vs. ProShares Trust | ProShares Trust vs. Hashdex Nasdaq Crypto |
| Invesco High vs. Strategy Shares | Invesco High vs. Freedom Day Dividend | Invesco High vs. Franklin Templeton ETF | Invesco High vs. iShares MSCI China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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