Correlation Between ProShares and IShares SP
Can any of the company-specific risk be diversified away by investing in both ProShares and IShares SP 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 and IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP 500 and iShares SP GSCI, you can compare the effects of market volatilities on ProShares and IShares SP 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 with a short position of IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and IShares SP.
Diversification Opportunities for ProShares and IShares SP
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ProShares and IShares is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP 500 and iShares SP GSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP GSCI and ProShares 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 SP 500 are associated (or correlated) with IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP GSCI has no effect on the direction of ProShares i.e., ProShares and IShares SP go up and down completely randomly.
Pair Corralation between ProShares and IShares SP
Given the investment horizon of 90 days ProShares SP 500 is expected to generate 0.84 times more return on investment than IShares SP. However, ProShares SP 500 is 1.18 times less risky than IShares SP. It trades about 0.11 of its potential returns per unit of risk. iShares SP GSCI is currently generating about 0.02 per unit of risk. If you would invest 4,334 in ProShares SP 500 on August 29, 2025 and sell it today you would earn a total of 227.00 from holding ProShares SP 500 or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
ProShares SP 500 vs. iShares SP GSCI
Performance |
| Timeline |
| ProShares SP 500 |
| iShares SP GSCI |
ProShares and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and IShares SP
The main advantage of trading using opposite ProShares and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| ProShares vs. FT Vest Equity | ProShares vs. Northern Lights | ProShares vs. Diamond Hill Funds | ProShares vs. Dimensional International High |
| IShares SP vs. Neuberger Berman Commodity | IShares SP vs. abrdn Bloomberg All | IShares SP vs. abrdn Bloomberg All | IShares SP vs. Direxion Auspice Broad |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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