Correlation Between Vident Core and OneAscent Core
Can any of the company-specific risk be diversified away by investing in both Vident Core and OneAscent Core 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 Vident Core and OneAscent Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vident Core Bond and OneAscent Core Plus, you can compare the effects of market volatilities on Vident Core and OneAscent Core 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 Vident Core with a short position of OneAscent Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vident Core and OneAscent Core.
Diversification Opportunities for Vident Core and OneAscent Core
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vident and OneAscent is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vident Core Bond and OneAscent Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Core Plus and Vident Core 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 Vident Core Bond are associated (or correlated) with OneAscent Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Core Plus has no effect on the direction of Vident Core i.e., Vident Core and OneAscent Core go up and down completely randomly.
Pair Corralation between Vident Core and OneAscent Core
Given the investment horizon of 90 days Vident Core Bond is expected to generate 1.32 times more return on investment than OneAscent Core. However, Vident Core is 1.32 times more volatile than OneAscent Core Plus. It trades about 0.15 of its potential returns per unit of risk. OneAscent Core Plus is currently generating about 0.18 per unit of risk. If you would invest 4,352 in Vident Core Bond on September 4, 2024 and sell it today you would earn a total of 55.00 from holding Vident Core Bond or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vident Core Bond vs. OneAscent Core Plus
Performance |
| Timeline |
| Vident Core Bond |
| OneAscent Core Plus |
Vident Core and OneAscent Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vident Core and OneAscent Core
The main advantage of trading using opposite Vident Core and OneAscent Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vident Core position performs unexpectedly, OneAscent Core 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 OneAscent Core will offset losses from the drop in OneAscent Core's long position.| Vident Core vs. iShares Core 1 5 | Vident Core vs. iShares Core International | Vident Core vs. iShares Treasury Bond | Vident Core vs. iShares 1 5 Year |
| OneAscent Core vs. iShares Core 1 5 | OneAscent Core vs. iShares Core International | OneAscent Core vs. iShares Treasury Bond | OneAscent Core vs. iShares 1 5 Year |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |