Correlation Between ProShares VIX and Avantis All
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and Avantis All 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 Avantis All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares VIX Short Term and Avantis All Equity, you can compare the effects of market volatilities on ProShares VIX and Avantis All 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 Avantis All. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and Avantis All.
Diversification Opportunities for ProShares VIX and Avantis All
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Avantis is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and Avantis All Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis All Equity 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 Short Term are associated (or correlated) with Avantis All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis All Equity has no effect on the direction of ProShares VIX i.e., ProShares VIX and Avantis All go up and down completely randomly.
Pair Corralation between ProShares VIX and Avantis All
Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the Avantis All. In addition to that, ProShares VIX is 4.91 times more volatile than Avantis All Equity. It trades about -0.08 of its total potential returns per unit of risk. Avantis All Equity is currently generating about 0.12 per unit of volatility. If you would invest 7,861 in Avantis All Equity on July 20, 2025 and sell it today you would earn a total of 431.00 from holding Avantis All Equity or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares VIX Short Term vs. Avantis All Equity
Performance |
| Timeline |
| ProShares VIX Short |
| Avantis All Equity |
ProShares VIX and Avantis All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and Avantis All
The main advantage of trading using opposite ProShares VIX and Avantis All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, Avantis All 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 Avantis All will offset losses from the drop in Avantis All's long position.| ProShares VIX vs. ProShares Short VIX | ProShares VIX vs. ProShares Ultra VIX | ProShares VIX vs. VanEck Short Muni | ProShares VIX vs. SPDR DoubleLine Short |
| Avantis All vs. John Hancock Multifactor | Avantis All vs. iShares North American | Avantis All vs. ProShares Russell 2000 | Avantis All vs. Xtrackers MSCI Europe |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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