Correlation Between ProShares VIX and FT Vest
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and FT Vest 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 FT Vest 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 FT Vest Equity, you can compare the effects of market volatilities on ProShares VIX and FT Vest 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 FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and FT Vest.
Diversification Opportunities for ProShares VIX and FT Vest
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and JULM is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and FT Vest Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest 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 FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Equity has no effect on the direction of ProShares VIX i.e., ProShares VIX and FT Vest go up and down completely randomly.
Pair Corralation between ProShares VIX and FT Vest
Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the FT Vest. In addition to that, ProShares VIX is 30.72 times more volatile than FT Vest Equity. It trades about -0.08 of its total potential returns per unit of risk. FT Vest Equity is currently generating about 0.23 per unit of volatility. If you would invest 3,266 in FT Vest Equity on July 20, 2025 and sell it today you would earn a total of 54.00 from holding FT Vest Equity or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
ProShares VIX Short Term vs. FT Vest Equity
Performance |
| Timeline |
| ProShares VIX Short |
| FT Vest Equity |
ProShares VIX and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and FT Vest
The main advantage of trading using opposite ProShares VIX and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest'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 |
| FT Vest vs. FT Vest Equity | FT Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. Horizon Funds |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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