Correlation Between Vanguard Global and James Alpha
Can any of the company-specific risk be diversified away by investing in both Vanguard Global and James Alpha 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 Global and James Alpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Global Ex Us and James Alpha Global, you can compare the effects of market volatilities on Vanguard Global and James Alpha 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 Global with a short position of James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Global and James Alpha.
Diversification Opportunities for Vanguard Global and James Alpha
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and James is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Global Ex Us and James Alpha Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha Global and Vanguard Global 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 Global Ex Us are associated (or correlated) with James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Global has no effect on the direction of Vanguard Global i.e., Vanguard Global and James Alpha go up and down completely randomly.
Pair Corralation between Vanguard Global and James Alpha
Assuming the 90 days horizon Vanguard Global Ex Us is expected to under-perform the James Alpha. In addition to that, Vanguard Global is 1.02 times more volatile than James Alpha Global. It trades about -0.25 of its total potential returns per unit of risk. James Alpha Global is currently generating about -0.18 per unit of volatility. If you would invest 1,502 in James Alpha Global on August 30, 2024 and sell it today you would lose (89.00) from holding James Alpha Global or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Global Ex Us vs. James Alpha Global
Performance |
| Timeline |
| Vanguard Global Ex |
| James Alpha Global |
Vanguard Global and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Global and James Alpha
The main advantage of trading using opposite Vanguard Global and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Global position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Vanguard Global vs. Columbia Global Technology | Vanguard Global vs. Global Technology Portfolio | Vanguard Global vs. Science Technology Fund | Vanguard Global vs. Janus Global Technology |
| James Alpha vs. James Alpha Global | James Alpha vs. James Alpha Global | James Alpha vs. Virtus Global Real | James Alpha vs. Virtus Global Real |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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