Correlation Between ProShares VIX and American Beacon
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and American Beacon 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 VIX and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares VIX Mid Term and American Beacon Select, you can compare the effects of market volatilities on ProShares VIX and American Beacon 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 VIX with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and American Beacon.
Diversification Opportunities for ProShares VIX and American Beacon
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and American is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Mid Term and American Beacon Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Select and ProShares VIX 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 VIX Mid Term are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Select has no effect on the direction of ProShares VIX i.e., ProShares VIX and American Beacon go up and down completely randomly.
Pair Corralation between ProShares VIX and American Beacon
Given the investment horizon of 90 days ProShares VIX Mid Term is expected to under-perform the American Beacon. But the etf apears to be less risky and, when comparing its historical volatility, ProShares VIX Mid Term is 1.05 times less risky than American Beacon. The etf trades about -0.05 of its potential returns per unit of risk. The American Beacon Select is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,285 in American Beacon Select on July 20, 2025 and sell it today you would earn a total of 238.00 from holding American Beacon Select or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares VIX Mid Term vs. American Beacon Select
Performance |
| Timeline |
| ProShares VIX Mid |
| American Beacon Select |
ProShares VIX and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and American Beacon
The main advantage of trading using opposite ProShares VIX and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| ProShares VIX vs. ProShares Ultra Yen | ProShares VIX vs. AdvisorShares Pure Cannabis | ProShares VIX vs. Leverage Shares 2X | ProShares VIX vs. Listed Funds Trust |
| American Beacon vs. FundX Investment Trust | American Beacon vs. Fidelity Disruptive Finance | American Beacon vs. FundX Investment Trust | American Beacon vs. Touchstone ETF Trust |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |