Correlation Between ProShares UltraPro and Vanguard Institutional
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and Vanguard Institutional 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 UltraPro and Vanguard Institutional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro QQQ and Vanguard Institutional Total, you can compare the effects of market volatilities on ProShares UltraPro and Vanguard Institutional 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 UltraPro with a short position of Vanguard Institutional. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and Vanguard Institutional.
Diversification Opportunities for ProShares UltraPro and Vanguard Institutional
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and Vanguard is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro QQQ and Vanguard Institutional Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Institutional and ProShares UltraPro 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 UltraPro QQQ are associated (or correlated) with Vanguard Institutional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Institutional has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and Vanguard Institutional go up and down completely randomly.
Pair Corralation between ProShares UltraPro and Vanguard Institutional
Given the investment horizon of 90 days ProShares UltraPro QQQ is expected to generate 4.03 times more return on investment than Vanguard Institutional. However, ProShares UltraPro is 4.03 times more volatile than Vanguard Institutional Total. It trades about 0.12 of its potential returns per unit of risk. Vanguard Institutional Total is currently generating about 0.12 per unit of risk. If you would invest 4,350 in ProShares UltraPro QQQ on August 30, 2025 and sell it today you would earn a total of 987.00 from holding ProShares UltraPro QQQ or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro QQQ vs. Vanguard Institutional Total
Performance |
| Timeline |
| ProShares UltraPro QQQ |
| Vanguard Institutional |
ProShares UltraPro and Vanguard Institutional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and Vanguard Institutional
The main advantage of trading using opposite ProShares UltraPro and Vanguard Institutional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, Vanguard Institutional 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 Vanguard Institutional will offset losses from the drop in Vanguard Institutional's long position.| ProShares UltraPro vs. FT Vest Equity | ProShares UltraPro vs. Northern Lights | ProShares UltraPro vs. Diamond Hill Funds | ProShares UltraPro vs. Dimensional International High |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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