Correlation Between ProShares Decline and ProShares Long

Can any of the company-specific risk be diversified away by investing in both ProShares Decline and ProShares Long 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 Decline and ProShares Long into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Decline of and ProShares Long OnlineShort, you can compare the effects of market volatilities on ProShares Decline and ProShares Long 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 Decline with a short position of ProShares Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Decline and ProShares Long.

Diversification Opportunities for ProShares Decline and ProShares Long

-0.92

Correlation Coefficient

ProShares Decline  ProShares Long

Pay attention - limited upside

The 3 months correlation between ProShares and ProShares is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Decline of and ProShares Long OnlineShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Long Onlin and ProShares Decline 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 Decline of are associated (or correlated) with ProShares Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Long Onlin has no effect on the direction of ProShares Decline i.e., ProShares Decline and ProShares Long go up and down completely randomly.

Pair Corralation between ProShares Decline and ProShares Long

Given the investment horizon of 90 days ProShares Decline of is expected to under-perform the ProShares Long. In addition to that, ProShares Decline is 1.25 times more volatile than ProShares Long OnlineShort. It trades about -0.19 of its total potential returns per unit of risk. ProShares Long OnlineShort is currently generating about 0.38 per unit of volatility. If you would invest  4,367  in ProShares Long OnlineShort on April 23, 2025 and sell it today you would earn a total of  1,063  from holding ProShares Long OnlineShort or generate 24.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

ProShares Decline of  vs.  ProShares Long OnlineShort

ProShares Decline

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProShares Decline of has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

ProShares Long Onlin

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Long OnlineShort are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, ProShares Long showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProShares Decline and ProShares Long

The main advantage of trading using opposite ProShares Decline and ProShares Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Decline position performs unexpectedly, ProShares Long 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 Long will offset losses from the drop in ProShares Long's long position.

The idea behind ProShares Decline of and ProShares Long OnlineShort pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.