Correlation Between Vanguard Total and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and ProShares UltraShort 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 Vanguard Total and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Stock and ProShares UltraShort SP500, you can compare the effects of market volatilities on Vanguard Total and ProShares UltraShort 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 Vanguard Total with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and ProShares UltraShort.
Diversification Opportunities for Vanguard Total and ProShares UltraShort
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and ProShares is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and ProShares UltraShort SP500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and Vanguard Total 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 Vanguard Total Stock are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of Vanguard Total i.e., Vanguard Total and ProShares UltraShort go up and down completely randomly.
Pair Corralation between Vanguard Total and ProShares UltraShort
Considering the 90-day investment horizon Vanguard Total Stock is expected to generate 0.5 times more return on investment than ProShares UltraShort. However, Vanguard Total Stock is 2.0 times less risky than ProShares UltraShort. It trades about 0.05 of its potential returns per unit of risk. ProShares UltraShort SP500 is currently generating about -0.05 per unit of risk. If you would invest 31,721 in Vanguard Total Stock on August 26, 2025 and sell it today you would earn a total of 659.00 from holding Vanguard Total Stock or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total Stock vs. ProShares UltraShort SP500
Performance |
| Timeline |
| Vanguard Total Stock |
| ProShares UltraShort |
Vanguard Total and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and ProShares UltraShort
The main advantage of trading using opposite Vanguard Total and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, ProShares UltraShort 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 ProShares UltraShort will offset losses from the drop in ProShares UltraShort's long position.| Vanguard Total vs. Vanguard FTSE Developed | Vanguard Total vs. Vanguard Developed Markets | Vanguard Total vs. Vanguard Developed Markets | Vanguard Total vs. Vanguard Institutional Index |
| ProShares UltraShort vs. ProShares UltraPro Russell2000 | ProShares UltraShort vs. ProShares UltraPro Short | ProShares UltraShort vs. ProShares Ultra Dow30 | ProShares UltraShort vs. ProShares Short QQQ |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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