Correlation Between ProShares VIX and MFS Active

Can any of the company-specific risk be diversified away by investing in both ProShares VIX and MFS Active 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 MFS Active 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 MFS Active Core, you can compare the effects of market volatilities on ProShares VIX and MFS Active 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 MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and MFS Active.

Diversification Opportunities for ProShares VIX and MFS Active

-0.85

Correlation Coefficient

ProShares VIX  MFS Active

Pay attention - limited upside

The 3 months correlation between ProShares and MFS is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and MFS Active Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Core 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 MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active Core has no effect on the direction of ProShares VIX i.e., ProShares VIX and MFS Active go up and down completely randomly.

Pair Corralation between ProShares VIX and MFS Active

Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the MFS Active. In addition to that, ProShares VIX is 11.46 times more volatile than MFS Active Core. It trades about -0.13 of its total potential returns per unit of risk. MFS Active Core is currently generating about 0.14 per unit of volatility. If you would invest  2,439  in MFS Active Core on May 19, 2025 and sell it today you would earn a total of  61.00  from holding MFS Active Core or generate 2.5% return on investment over 90 days.

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

ProShares VIX Short Term  vs.  MFS Active Core

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 unfluctuating performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

MFS Active Core

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Active Core are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MFS Active 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 VIX and MFS Active

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

The idea behind ProShares VIX Short Term and MFS Active Core 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 Global Correlations module to find global opportunities by holding instruments from different markets.