Correlation Between Vanguard Total and Exchange Listed
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Exchange Listed 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 Vanguard Total and Exchange Listed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Bond and Exchange Listed Funds, you can compare the effects of market volatilities on Vanguard Total and Exchange Listed 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 Vanguard Total with a short position of Exchange Listed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Exchange Listed.
Diversification Opportunities for Vanguard Total and Exchange Listed
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Exchange is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Bond and Exchange Listed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Listed Funds and Vanguard Total 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 Vanguard Total Bond are associated (or correlated) with Exchange Listed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Listed Funds has no effect on the direction of Vanguard Total i.e., Vanguard Total and Exchange Listed go up and down completely randomly.
Pair Corralation between Vanguard Total and Exchange Listed
Considering the 90-day investment horizon Vanguard Total is expected to generate 6.28 times less return on investment than Exchange Listed. But when comparing it to its historical volatility, Vanguard Total Bond is 2.5 times less risky than Exchange Listed. It trades about 0.05 of its potential returns per unit of risk. Exchange Listed Funds is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,049 in Exchange Listed Funds on October 20, 2024 and sell it today you would earn a total of 51.00 from holding Exchange Listed Funds or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total Bond vs. Exchange Listed Funds
Performance |
| Timeline |
| Vanguard Total Bond |
| Exchange Listed Funds |
Vanguard Total and Exchange Listed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Exchange Listed
The main advantage of trading using opposite Vanguard Total and Exchange Listed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Exchange Listed 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 Exchange Listed will offset losses from the drop in Exchange Listed's long position.| Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total Stock | Vanguard Total vs. Vanguard Real Estate |
| Exchange Listed vs. Vanguard Total Stock | Exchange Listed vs. SPDR SP 500 | Exchange Listed vs. iShares Core SP | Exchange Listed vs. Vanguard Dividend Appreciation |
Check out your portfolio center.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets |