Correlation Between ProShares Short and ProShares Large

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

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

Diversification Opportunities for ProShares Short and ProShares Large

-0.89

Correlation Coefficient

ProShares Short  ProShares Large

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 Short QQQ and ProShares Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Large Cap 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 QQQ are associated (or correlated) with ProShares Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Large Cap has no effect on the direction of ProShares Short i.e., ProShares Short and ProShares Large go up and down completely randomly.

Pair Corralation between ProShares Short and ProShares Large

Considering the 90-day investment horizon ProShares Short QQQ is expected to under-perform the ProShares Large. In addition to that, ProShares Short is 1.34 times more volatile than ProShares Large Cap. It trades about -0.1 of its total potential returns per unit of risk. ProShares Large Cap is currently generating about 0.13 per unit of volatility. 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 Short QQQ  vs.  ProShares Large Cap

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.

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.

Pair Trading with ProShares Short and ProShares Large

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

The idea behind ProShares Short QQQ and ProShares Large Cap 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.