Correlation Between ProShares Short and Simplify Asset

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

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

Diversification Opportunities for ProShares Short and Simplify Asset

0.0

Correlation Coefficient

ProShares Short  Simplify Asset

Pay attention - limited upside

The 3 months correlation between ProShares and Simplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short QQQ and Simplify Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Asset Management and ProShares Short 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 Short QQQ are associated (or correlated) with Simplify Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Asset Management has no effect on the direction of ProShares Short i.e., ProShares Short and Simplify Asset go up and down completely randomly.

Pair Corralation between ProShares Short and Simplify Asset

If you would invest (100.00) in Simplify Asset Management on May 8, 2025 and sell it today you would earn a total of  100.00  from holding Simplify Asset Management or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ProShares Short QQQ  vs.  Simplify Asset Management

ProShares Short QQQ

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares Short QQQ has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Simplify Asset Management

Risk-Adjusted Performance

Weakest

Over the last 90 days Simplify Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Simplify Asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares Short and Simplify Asset

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

The idea behind ProShares Short QQQ and Simplify Asset Management 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.