Correlation Between ProShares VIX and PGIM Laddered

Can any of the company-specific risk be diversified away by investing in both ProShares VIX and PGIM Laddered 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 PGIM Laddered 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 PGIM Laddered Nasdaq 100, you can compare the effects of market volatilities on ProShares VIX and PGIM Laddered 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 PGIM Laddered. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and PGIM Laddered.

Diversification Opportunities for ProShares VIX and PGIM Laddered

-0.61

Correlation Coefficient

ProShares VIX  PGIM Laddered

Excellent diversification

The 3 months correlation between ProShares and PGIM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and PGIM Laddered Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Laddered Nasdaq 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 PGIM Laddered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Laddered Nasdaq has no effect on the direction of ProShares VIX i.e., ProShares VIX and PGIM Laddered go up and down completely randomly.

Pair Corralation between ProShares VIX and PGIM Laddered

Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the PGIM Laddered. In addition to that, ProShares VIX is 8.77 times more volatile than PGIM Laddered Nasdaq 100. It trades about -0.03 of its total potential returns per unit of risk. PGIM Laddered Nasdaq 100 is currently generating about 0.13 per unit of volatility. If you would invest  2,773  in PGIM Laddered Nasdaq 100 on September 10, 2025 and sell it today you would earn a total of  97.30  from holding PGIM Laddered Nasdaq 100 or generate 3.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

ProShares VIX Short Term  vs.  PGIM Laddered Nasdaq 100

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 latest weak performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

PGIM Laddered Nasdaq

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PGIM Laddered Nasdaq 100 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, PGIM Laddered is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ProShares VIX and PGIM Laddered

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

The idea behind ProShares VIX Short Term and PGIM Laddered Nasdaq 100 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.