Correlation Between ProShares VIX and DGA Core
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and DGA Core 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 DGA Core 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 DGA Core Plus, you can compare the effects of market volatilities on ProShares VIX and DGA Core 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 DGA Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and DGA Core.
Diversification Opportunities for ProShares VIX and DGA Core
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and DGA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and DGA Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGA Core Plus 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 DGA Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGA Core Plus has no effect on the direction of ProShares VIX i.e., ProShares VIX and DGA Core go up and down completely randomly.
Pair Corralation between ProShares VIX and DGA Core
Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the DGA Core. In addition to that, ProShares VIX is 14.02 times more volatile than DGA Core Plus. It trades about -0.08 of its total potential returns per unit of risk. DGA Core Plus is currently generating about 0.18 per unit of volatility. If you would invest 2,064 in DGA Core Plus on July 20, 2025 and sell it today you would earn a total of 57.00 from holding DGA Core Plus or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares VIX Short Term vs. DGA Core Plus
Performance |
| Timeline |
| ProShares VIX Short |
| DGA Core Plus |
ProShares VIX and DGA Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and DGA Core
The main advantage of trading using opposite ProShares VIX and DGA Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, DGA Core 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 DGA Core will offset losses from the drop in DGA Core'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 |
| DGA Core vs. SPDR SSGA Sector | DGA Core vs. Invesco CEF Income | DGA Core vs. Innovator SP 500 | DGA Core vs. OShares Quality Dividend |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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