Correlation Between ProShares VIX and T Rowe

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

Diversification Opportunities for ProShares VIX and T Rowe

-0.98

Correlation Coefficient

ProShares VIX  T Rowe

Pay attention - limited upside

The 3 months correlation between ProShares and TCHP is -0.98. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of ProShares VIX i.e., ProShares VIX and T Rowe go up and down completely randomly.

Pair Corralation between ProShares VIX and T Rowe

Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the T Rowe. In addition to that, ProShares VIX is 3.79 times more volatile than T Rowe Price. It trades about -0.17 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.31 per unit of volatility. If you would invest  3,977  in T Rowe Price on May 3, 2025 and sell it today you would earn a total of  719.00  from holding T Rowe Price or generate 18.08% 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.  T Rowe Price

ProShares VIX Short

Risk-Adjusted Performance

Very Weak

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.

T Rowe Price

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical indicators, T Rowe reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProShares VIX and T Rowe

The main advantage of trading using opposite ProShares VIX and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind ProShares VIX Short Term and T Rowe Price 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.