Correlation Between ProShares VIX and Calamos SP

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

By analyzing existing cross correlation between ProShares VIX Short Term and Calamos SP 500, you can compare the effects of market volatilities on ProShares VIX and Calamos SP 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 VIX with a short position of Calamos SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and Calamos SP.

Diversification Opportunities for ProShares VIX and Calamos SP

-0.19

Correlation Coefficient

ProShares VIX  Calamos SP

Good diversification

The 3 months correlation between ProShares and Calamos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and Calamos SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos SP 500 and ProShares VIX 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 VIX Short Term are associated (or correlated) with Calamos SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos SP 500 has no effect on the direction of ProShares VIX i.e., ProShares VIX and Calamos SP go up and down completely randomly.

Pair Corralation between ProShares VIX and Calamos SP

Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the Calamos SP. In addition to that, ProShares VIX is 25.09 times more volatile than Calamos SP 500. It trades about -0.01 of its total potential returns per unit of risk. Calamos SP 500 is currently generating about 0.12 per unit of volatility. If you would invest  2,493  in Calamos SP 500 on August 30, 2025 and sell it today you would earn a total of  10.00  from holding Calamos SP 500 or generate 0.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ProShares VIX Short Term  vs.  Calamos SP 500

ProShares VIX Short

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares VIX Short Term has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Calamos SP 500

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos SP 500 are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Calamos SP is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ProShares VIX and Calamos SP

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

The idea behind ProShares VIX Short Term and Calamos SP 500 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.