Correlation Between Vanguard Growth and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Vanguard Growth and Catalyst/millburn 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 Growth and Catalyst/millburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Growth Index and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Vanguard Growth and Catalyst/millburn 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 Growth with a short position of Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Growth and Catalyst/millburn.
Diversification Opportunities for Vanguard Growth and Catalyst/millburn
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Catalyst/millburn is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Vanguard Growth 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 Growth Index are associated (or correlated) with Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Vanguard Growth i.e., Vanguard Growth and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Vanguard Growth and Catalyst/millburn
Assuming the 90 days horizon Vanguard Growth Index is expected to under-perform the Catalyst/millburn. In addition to that, Vanguard Growth is 2.26 times more volatile than Catalystmillburn Hedge Strategy. It trades about -0.05 of its total potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.37 per unit of volatility. If you would invest 3,861 in Catalystmillburn Hedge Strategy on October 22, 2024 and sell it today you would earn a total of 144.00 from holding Catalystmillburn Hedge Strategy or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Growth Index vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Vanguard Growth Index |
| Catalystmillburn Hedge |
Vanguard Growth and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Growth and Catalyst/millburn
The main advantage of trading using opposite Vanguard Growth and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Growth position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Vanguard Growth vs. Alphacentric Symmetry Strategy | Vanguard Growth vs. Virtus Multi Strategy Target | Vanguard Growth vs. Saat Defensive Strategy | Vanguard Growth vs. Artisan Developing World |
| Catalyst/millburn vs. Versatile Bond Portfolio | Catalyst/millburn vs. Multisector Bond Sma | Catalyst/millburn vs. Ab Bond Inflation | Catalyst/millburn vs. Metropolitan West Porate |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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