Vanguard Correlations

VUSA Etf

90.91 0.41 0.45%

The current 90-days correlation between Vanguard SP 500 and Leverage Shares 3x is 0.64 (i.e., Poor diversification). The correlation of Vanguard is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Vanguard Correlation With Market

Poor diversification

The correlation between Vanguard SP 500 and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard SP 500 and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Vanguard could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vanguard when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vanguard - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vanguard SP 500 to buy it.

Moving together with Vanguard Etf

0.9	NVD2	Leverage Shares 2x	Pair Corr
0.92	INFU	Lyxor 10Y Inflation	Pair Corr
0.88	QQQ3	WisdomTree NASDAQ 100	Pair Corr

Moving against Vanguard Etf

0.82

3ULS

WisdomTree SP 500

Pair Corr

Related Correlations Analysis

	3ARE	3CON	3PLT	SGBP	NVD3	3NVD	NVD2	QQQ5	5QQQ	3UBE
3ARE		0.93	0.95	0.78	0.69	0.72	0.71	0.78	0.83	-0.32	3ARE
3CON	0.93		0.89	0.79	0.7	0.72	0.7	0.69	0.75	-0.33	3CON
3PLT	0.95	0.89		0.89	0.72	0.75	0.74	0.72	0.79	-0.32	3PLT
SGBP	0.78	0.79	0.89		0.7	0.74	0.72	0.54	0.63	-0.32	SGBP
NVD3	0.69	0.7	0.72	0.7		1.0	1.0	0.89	0.91	0.12	NVD3
3NVD	0.72	0.72	0.75	0.74	1.0		1.0	0.88	0.91	0.09	3NVD
NVD2	0.71	0.7	0.74	0.72	1.0	1.0		0.89	0.91	0.12	NVD2
QQQ5	0.78	0.69	0.72	0.54	0.89	0.88	0.89		0.99	0.18	QQQ5
5QQQ	0.83	0.75	0.79	0.63	0.91	0.91	0.91	0.99		0.11	5QQQ
3UBE	-0.32	-0.33	-0.32	-0.32	0.12	0.09	0.12	0.18	0.11		3UBE
	3ARE	3CON	3PLT	SGBP	NVD3	3NVD	NVD2	QQQ5	5QQQ	3UBE

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

3NVD	+ 1.0	NVD3
NVD2	+ 1.0	NVD3
NVD2	+ 1.0	3NVD
5QQQ	+ 0.99	QQQ5
3PLT	+ 0.95	3ARE
3CON	+ 0.93	3ARE

High negative correlations

3UBE	- 0.33	3CON
3UBE	- 0.32	SGBP
3UBE	- 0.32	3PLT
3UBE	- 0.32	3ARE

Vanguard Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Vanguard's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
3ARE	4.96	0.51	0.16	0.21	5.35	(5.12)	10.60	(9.50)	40.25
3CON	12.71	0.69	0.14	0.17	13.97	(14.19)	29.54	(19.42)	99.07
3PLT	8.84	2.71	0.45	0.51	6.39	(11.18)	20.13	(10.82)	76.95
SGBP	0.32	0.09	(0.09)	(2.49)	0.00	(0.38)	0.98	(0.52)	1.94
NVD3	6.45	(0.02)	0.02	0.11	8.21	(6.24)	12.69	(12.07)	39.29
3NVD	6.46	0.05	0.03	0.14	8.03	(6.32)	12.28	(11.63)	38.75
NVD2	4.30	0.01	0.02	0.12	5.45	(4.18)	8.22	(7.48)	26.09
QQQ5	3.81	(0.08)	0.04	0.10	5.22	(4.04)	10.53	(10.08)	29.25
5QQQ	3.75	0.00	0.05	0.12	5.13	(3.67)	9.49	(9.85)	28.48
3UBE	5.22	(0.21)	0.00	0.04	8.33	(5.35)	10.10	(9.89)	60.76

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Our tools can tell you how much better you can do entering a position in Vanguard without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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