Correlation Between ProShares Nasdaq and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ProShares Nasdaq and Dow Jones 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 Nasdaq and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Nasdaq 100 High and Dow Jones Industrial, you can compare the effects of market volatilities on ProShares Nasdaq and Dow Jones 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 Nasdaq with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Nasdaq and Dow Jones.
Diversification Opportunities for ProShares Nasdaq and Dow Jones
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and Dow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Nasdaq 100 High and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and ProShares Nasdaq 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 Nasdaq 100 High are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of ProShares Nasdaq i.e., ProShares Nasdaq and Dow Jones go up and down completely randomly.
Pair Corralation between ProShares Nasdaq and Dow Jones
Given the investment horizon of 90 days ProShares Nasdaq 100 High is expected to generate 1.34 times more return on investment than Dow Jones. However, ProShares Nasdaq is 1.34 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 4,132 in ProShares Nasdaq 100 High on July 20, 2025 and sell it today you would earn a total of 262.00 from holding ProShares Nasdaq 100 High or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
ProShares Nasdaq 100 High vs. Dow Jones Industrial
Performance |
| Timeline |
ProShares Nasdaq and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ProShares Nasdaq 100 High
Pair trading matchups for ProShares Nasdaq
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ProShares Nasdaq and Dow Jones
The main advantage of trading using opposite ProShares Nasdaq and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Nasdaq position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| ProShares Nasdaq vs. Return Stacked Stocks | ProShares Nasdaq vs. iShares Trust | ProShares Nasdaq vs. United States Commodity | ProShares Nasdaq vs. Amplify BlackSwan Growth |
| Dow Jones vs. Wizz Air Holdings | Dow Jones vs. Orion Office Reit | Dow Jones vs. Sinclair Broadcast Group | Dow Jones vs. Ryanair Holdings PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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