Correlation Between Jacob Forward and Vanguard Mid
Can any of the company-specific risk be diversified away by investing in both Jacob Forward and Vanguard Mid 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 Jacob Forward and Vanguard Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Forward ETF and Vanguard Mid Cap Growth, you can compare the effects of market volatilities on Jacob Forward and Vanguard Mid 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 Jacob Forward with a short position of Vanguard Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Forward and Vanguard Mid.
Diversification Opportunities for Jacob Forward and Vanguard Mid
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jacob and Vanguard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Forward ETF and Vanguard Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Mid Cap and Jacob Forward 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 Jacob Forward ETF are associated (or correlated) with Vanguard Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Mid Cap has no effect on the direction of Jacob Forward i.e., Jacob Forward and Vanguard Mid go up and down completely randomly.
Pair Corralation between Jacob Forward and Vanguard Mid
Given the investment horizon of 90 days Jacob Forward ETF is expected to generate 2.09 times more return on investment than Vanguard Mid. However, Jacob Forward is 2.09 times more volatile than Vanguard Mid Cap Growth. It trades about 0.06 of its potential returns per unit of risk. Vanguard Mid Cap Growth is currently generating about 0.08 per unit of risk. If you would invest 946.00 in Jacob Forward ETF on September 12, 2024 and sell it today you would earn a total of 359.00 from holding Jacob Forward ETF or generate 37.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacob Forward ETF vs. Vanguard Mid Cap Growth
Performance |
| Timeline |
| Jacob Forward ETF |
| Vanguard Mid Cap |
Jacob Forward and Vanguard Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Forward and Vanguard Mid
The main advantage of trading using opposite Jacob Forward and Vanguard Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Forward position performs unexpectedly, Vanguard Mid 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 Vanguard Mid will offset losses from the drop in Vanguard Mid's long position.| Jacob Forward vs. Vanguard Mid Cap Growth | Jacob Forward vs. Vanguard Small Cap Value | Jacob Forward vs. Vanguard Mid Cap Value | Jacob Forward vs. Vanguard Growth Index |
| Vanguard Mid vs. Vanguard Small Cap Growth | Vanguard Mid vs. Vanguard Mid Cap Value | Vanguard Mid vs. Vanguard Small Cap Value | Vanguard Mid vs. Vanguard Mid Cap Index |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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