Correlation Between ProShares Large and ProShares Short

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

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

Diversification Opportunities for ProShares Large and ProShares Short

-0.89

Correlation Coefficient

ProShares Large  ProShares Short

Pay attention - limited upside

The 3 months correlation between ProShares and ProShares is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Large Cap and ProShares Short QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short QQQ and ProShares Large 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 Large Cap are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short QQQ has no effect on the direction of ProShares Large i.e., ProShares Large and ProShares Short go up and down completely randomly.

Pair Corralation between ProShares Large and ProShares Short

Considering the 90-day investment horizon ProShares Large Cap is expected to generate 0.75 times more return on investment than ProShares Short. However, ProShares Large Cap is 1.34 times less risky than ProShares Short. It trades about 0.13 of its potential returns per unit of risk. ProShares Short QQQ is currently generating about -0.1 per unit of risk. If you would invest  7,398  in ProShares Large Cap on September 3, 2025 and sell it today you would earn a total of  502.00  from holding ProShares Large Cap or generate 6.79% return on investment over 90 days.

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

ProShares Large Cap  vs.  ProShares Short QQQ

ProShares Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Large Cap are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, ProShares Large may actually be approaching a critical reversion point that can send shares even higher in January 2026.

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 latest fragile performance, the Etf's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

Pair Trading with ProShares Large and ProShares Short

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

The idea behind ProShares Large Cap and ProShares Short QQQ 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.