Correlation Between ProShares VIX and Innovator MSCI
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and Innovator MSCI 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 Innovator MSCI 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 Innovator MSCI Emerging, you can compare the effects of market volatilities on ProShares VIX and Innovator MSCI 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 Innovator MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and Innovator MSCI.
Diversification Opportunities for ProShares VIX and Innovator MSCI
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Innovator is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and Innovator MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator MSCI Emerging 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 Innovator MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator MSCI Emerging has no effect on the direction of ProShares VIX i.e., ProShares VIX and Innovator MSCI go up and down completely randomly.
Pair Corralation between ProShares VIX and Innovator MSCI
Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the Innovator MSCI. In addition to that, ProShares VIX is 10.72 times more volatile than Innovator MSCI Emerging. It trades about -0.2 of its total potential returns per unit of risk. Innovator MSCI Emerging is currently generating about 0.26 per unit of volatility. If you would invest 3,211 in Innovator MSCI Emerging on July 11, 2025 and sell it today you would earn a total of 118.00 from holding Innovator MSCI Emerging or generate 3.67% 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. Innovator MSCI Emerging
Performance |
| Timeline |
| ProShares VIX Short |
| Innovator MSCI Emerging |
ProShares VIX and Innovator MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and Innovator MSCI
The main advantage of trading using opposite ProShares VIX and Innovator MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, Innovator MSCI 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 Innovator MSCI will offset losses from the drop in Innovator MSCI's long position.| ProShares VIX vs. ProShares VIX Mid Term | ProShares VIX vs. ProShares Short VIX | ProShares VIX vs. ProShares Ultra VIX | ProShares VIX vs. iPath Series B |
| Innovator MSCI vs. First Trust Cboe | Innovator MSCI vs. FT Cboe Vest | Innovator MSCI vs. Innovator SP 500 | Innovator MSCI vs. Innovator SP 500 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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