Correlation Between Vanguard Mega and BFIT
Can any of the company-specific risk be diversified away by investing in both Vanguard Mega and BFIT 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 Mega and BFIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Mega Cap and BFIT, you can compare the effects of market volatilities on Vanguard Mega and BFIT 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 Mega with a short position of BFIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Mega and BFIT.
Diversification Opportunities for Vanguard Mega and BFIT
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vanguard and BFIT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Mega Cap and BFIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BFIT and Vanguard Mega 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 Mega Cap are associated (or correlated) with BFIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BFIT has no effect on the direction of Vanguard Mega i.e., Vanguard Mega and BFIT go up and down completely randomly.
Pair Corralation between Vanguard Mega and BFIT
If you would invest 20,986 in Vanguard Mega Cap on August 30, 2024 and sell it today you would earn a total of 516.00 from holding Vanguard Mega Cap or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Vanguard Mega Cap vs. BFIT
Performance |
| Timeline |
| Vanguard Mega Cap |
| BFIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vanguard Mega and BFIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Mega and BFIT
The main advantage of trading using opposite Vanguard Mega and BFIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Mega position performs unexpectedly, BFIT 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 BFIT will offset losses from the drop in BFIT's long position.| Vanguard Mega vs. JPMorgan BetaBuilders International | Vanguard Mega vs. JPMorgan Core Plus | Vanguard Mega vs. JPMorgan BetaBuilders Canada | Vanguard Mega vs. JPMorgan Emerging Markets |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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