Correlation Between ProShares Short and ProShares Long

Can any of the company-specific risk be diversified away by investing in both ProShares Short 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 Short 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 Short Real and ProShares Long OnlineShort, you can compare the effects of market volatilities on ProShares Short 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 Short with a short position of ProShares Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and ProShares Long.

Diversification Opportunities for ProShares Short and ProShares Long

0.0

Correlation Coefficient

ProShares Short  ProShares Long

Pay attention - limited upside

The 3 months correlation between ProShares and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short Real 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 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 Real 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 Short i.e., ProShares Short and ProShares Long go up and down completely randomly.

Pair Corralation between ProShares Short and ProShares Long

If you would invest  4,934  in ProShares Long OnlineShort on May 13, 2025 and sell it today you would earn a total of  491.00  from holding ProShares Long OnlineShort or generate 9.95% return on investment over 90 days.

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

ProShares Short Real  vs.  ProShares Long OnlineShort

ProShares Short Real

Risk-Adjusted Performance

Weak

Over the last 90 days ProShares Short Real has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, ProShares Short is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

ProShares Long Onlin

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Long OnlineShort are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, ProShares Long may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ProShares Short and ProShares Long

The main advantage of trading using opposite ProShares Short and ProShares Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short 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 Short Real 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.