Correlation Between Vanguard Growth and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Vanguard Growth and ProShares Short 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 Growth and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Growth Index and ProShares Short QQQ, you can compare the effects of market volatilities on Vanguard Growth and ProShares Short 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 Growth with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Growth and ProShares Short.
Diversification Opportunities for Vanguard Growth and ProShares Short
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and ProShares is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index and ProShares Short QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short QQQ and Vanguard Growth 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 Growth Index are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short QQQ has no effect on the direction of Vanguard Growth i.e., Vanguard Growth and ProShares Short go up and down completely randomly.
Pair Corralation between Vanguard Growth and ProShares Short
Considering the 90-day investment horizon Vanguard Growth Index is expected to generate 0.94 times more return on investment than ProShares Short. However, Vanguard Growth Index is 1.07 times less risky than ProShares Short. It trades about 0.06 of its potential returns per unit of risk. ProShares Short QQQ is currently generating about -0.06 per unit of risk. If you would invest 46,057 in Vanguard Growth Index on August 27, 2025 and sell it today you would earn a total of 1,579 from holding Vanguard Growth Index or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Growth Index vs. ProShares Short QQQ
Performance |
| Timeline |
| Vanguard Growth Index |
| ProShares Short QQQ |
Vanguard Growth and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Growth and ProShares Short
The main advantage of trading using opposite Vanguard Growth and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Growth position performs unexpectedly, ProShares Short 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 Short will offset losses from the drop in ProShares Short's long position.| Vanguard Growth vs. FT Vest Equity | Vanguard Growth vs. Northern Lights | Vanguard Growth vs. Diamond Hill Funds | Vanguard Growth vs. Dimensional International High |
| ProShares Short vs. FT Vest Equity | ProShares Short vs. Northern Lights | ProShares Short vs. Diamond Hill Funds | ProShares Short vs. Dimensional International High |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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