Correlation Between Vanguard Intermediate and Lkcm Fixed
Can any of the company-specific risk be diversified away by investing in both Vanguard Intermediate and Lkcm Fixed 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 Intermediate and Lkcm Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Intermediate Term Investment Grade and Lkcm Fixed Income, you can compare the effects of market volatilities on Vanguard Intermediate and Lkcm Fixed 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 Intermediate with a short position of Lkcm Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Intermediate and Lkcm Fixed.
Diversification Opportunities for Vanguard Intermediate and Lkcm Fixed
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Lkcm is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Intermediate Term Inv and Lkcm Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Fixed Income and Vanguard Intermediate 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 Intermediate Term Investment Grade are associated (or correlated) with Lkcm Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Fixed Income has no effect on the direction of Vanguard Intermediate i.e., Vanguard Intermediate and Lkcm Fixed go up and down completely randomly.
Pair Corralation between Vanguard Intermediate and Lkcm Fixed
Assuming the 90 days horizon Vanguard Intermediate Term Investment Grade is expected to generate 2.04 times more return on investment than Lkcm Fixed. However, Vanguard Intermediate is 2.04 times more volatile than Lkcm Fixed Income. It trades about 0.07 of its potential returns per unit of risk. Lkcm Fixed Income is currently generating about 0.1 per unit of risk. If you would invest 790.00 in Vanguard Intermediate Term Investment Grade on September 12, 2024 and sell it today you would earn a total of 83.00 from holding Vanguard Intermediate Term Investment Grade or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Intermediate Term Inv vs. Lkcm Fixed Income
Performance |
| Timeline |
| Vanguard Intermediate |
| Lkcm Fixed Income |
Vanguard Intermediate and Lkcm Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Intermediate and Lkcm Fixed
The main advantage of trading using opposite Vanguard Intermediate and Lkcm Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Intermediate position performs unexpectedly, Lkcm Fixed 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 Lkcm Fixed will offset losses from the drop in Lkcm Fixed's long position.The idea behind Vanguard Intermediate Term Investment Grade and Lkcm Fixed Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Lkcm Fixed vs. Cb Large Cap | Lkcm Fixed vs. Qs Large Cap | Lkcm Fixed vs. Fidelity Series 1000 | Lkcm Fixed vs. Americafirst Large Cap |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |