Correlation Between ProShares Large and ProShares Short
Can any of the company-specific risk be diversified away by investing in both ProShares Large 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 ProShares Large and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Large Cap and ProShares Short QQQ, you can compare the effects of market volatilities on ProShares Large 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 ProShares Large with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Large and ProShares Short.
Diversification Opportunities for ProShares Large and ProShares Short
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ProShares is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Large Cap and ProShares Short QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short QQQ and ProShares Large 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 Large Cap 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 QQQ has no effect on the direction of ProShares Large i.e., ProShares Large and ProShares Short go up and down completely randomly.
Pair Corralation between ProShares Large and ProShares Short
Considering the 90-day investment horizon ProShares Large Cap is expected to under-perform the ProShares Short. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Large Cap is 1.37 times less risky than ProShares Short. The etf trades about -0.04 of its potential returns per unit of risk. The ProShares Short QQQ is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,091 in ProShares Short QQQ on August 22, 2025 and sell it today you would earn a total of 105.00 from holding ProShares Short QQQ or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Large Cap vs. ProShares Short QQQ
Performance |
| Timeline |
| ProShares Large Cap |
| ProShares Short QQQ |
ProShares Large and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Large and ProShares Short
The main advantage of trading using opposite ProShares Large and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Large 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.| ProShares Large vs. ProShares Ultra Dow30 | ProShares Large vs. Invesco Actively Managed | ProShares Large vs. FlexShares Quality Dividend | ProShares Large vs. iShares ESG Screened |
| ProShares Short vs. ProShares UltraPro Short | ProShares Short vs. ProShares UltraShort SP500 | ProShares Short vs. ProShares UltraShort QQQ | ProShares Short vs. Direxion Daily Junior |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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