Correlation Between Vanguard ESG and ProShares
Can any of the company-specific risk be diversified away by investing in both Vanguard ESG and ProShares 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 Vanguard ESG and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard ESG Stock and ProShares SP 500, you can compare the effects of market volatilities on Vanguard ESG and ProShares 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 Vanguard ESG with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard ESG and ProShares.
Diversification Opportunities for Vanguard ESG and ProShares
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and ProShares is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard ESG Stock and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP 500 and Vanguard ESG 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 Vanguard ESG Stock are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of Vanguard ESG i.e., Vanguard ESG and ProShares go up and down completely randomly.
Pair Corralation between Vanguard ESG and ProShares
Given the investment horizon of 90 days Vanguard ESG is expected to generate 1.04 times less return on investment than ProShares. In addition to that, Vanguard ESG is 1.32 times more volatile than ProShares SP 500. It trades about 0.06 of its total potential returns per unit of risk. ProShares SP 500 is currently generating about 0.08 per unit of volatility. If you would invest 10,182 in ProShares SP 500 on October 9, 2025 and sell it today you would earn a total of 331.00 from holding ProShares SP 500 or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard ESG Stock vs. ProShares SP 500
Performance |
| Timeline |
| Vanguard ESG Stock |
| ProShares SP 500 |
Vanguard ESG and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard ESG and ProShares
The main advantage of trading using opposite Vanguard ESG and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard ESG position performs unexpectedly, ProShares 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 will offset losses from the drop in ProShares' long position.| Vanguard ESG vs. SPDR Portfolio SP | Vanguard ESG vs. Vanguard Russell 1000 | Vanguard ESG vs. Vanguard International Value | Vanguard ESG vs. Vanguard Russell 2000 |
| ProShares vs. iShares Core High | ProShares vs. Dimensional Small Cap | ProShares vs. First Trust NASDAQ | ProShares vs. Vanguard Pacific Stock |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |