Correlation Between ProShares VIX and Neuberger Berman

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

Diversification Opportunities for ProShares VIX and Neuberger Berman

-0.65

Correlation Coefficient

ProShares VIX  Neuberger Berman

Excellent diversification

The 3 months correlation between ProShares and Neuberger is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and Neuberger Berman Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Com 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Com has no effect on the direction of ProShares VIX i.e., ProShares VIX and Neuberger Berman go up and down completely randomly.

Pair Corralation between ProShares VIX and Neuberger Berman

Given the investment horizon of 90 days ProShares VIX Short Term is expected to generate 7.19 times more return on investment than Neuberger Berman. However, ProShares VIX is 7.19 times more volatile than Neuberger Berman Commodity. It trades about 0.04 of its potential returns per unit of risk. Neuberger Berman Commodity is currently generating about 0.05 per unit of risk. If you would invest  4,352  in ProShares VIX Short Term on March 22, 2025 and sell it today you would earn a total of  806.00  from holding ProShares VIX Short Term or generate 18.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

ProShares VIX Short Term  vs.  Neuberger Berman Commodity

ProShares VIX Short

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares VIX Short Term are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, ProShares VIX showed solid returns over the last few months and may actually be approaching a breakup point.

Neuberger Berman Com

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Commodity are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ProShares VIX and Neuberger Berman

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

The idea behind ProShares VIX Short Term and Neuberger Berman Commodity 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..