Correlation Between ProShares VIX and Global X
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and Global X 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 Global X 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 Global X Infrastructure, you can compare the effects of market volatilities on ProShares VIX and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and Global X.
Diversification Opportunities for ProShares VIX and Global X
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Global is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and Global X Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Infrastructure 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Infrastructure has no effect on the direction of ProShares VIX i.e., ProShares VIX and Global X go up and down completely randomly.
Pair Corralation between ProShares VIX and Global X
Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the Global X. In addition to that, ProShares VIX is 3.5 times more volatile than Global X Infrastructure. It trades about -0.03 of its total potential returns per unit of risk. Global X Infrastructure is currently generating about 0.03 per unit of volatility. If you would invest 4,614 in Global X Infrastructure on August 17, 2025 and sell it today you would earn a total of 85.00 from holding Global X Infrastructure or generate 1.84% 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. Global X Infrastructure
Performance |
| Timeline |
| ProShares VIX Short |
| Global X Infrastructure |
ProShares VIX and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and Global X
The main advantage of trading using opposite ProShares VIX and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
| Global X vs. Dimensional ETF Trust | Global X vs. Dimensional Core Equity | Global X vs. Vanguard Russell 1000 | Global X vs. iShares MSCI EAFE |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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