Correlation Between Vanguard Small and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Vanguard Small and Emerging Markets 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 Small and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Small Cap Value and Emerging Markets Breakout, you can compare the effects of market volatilities on Vanguard Small and Emerging Markets 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 Small with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small and Emerging Markets.
Diversification Opportunities for Vanguard Small and Emerging Markets
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and Emerging is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Value and Emerging Markets Breakout in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Breakout and Vanguard Small 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 Small Cap Value are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Breakout has no effect on the direction of Vanguard Small i.e., Vanguard Small and Emerging Markets go up and down completely randomly.
Pair Corralation between Vanguard Small and Emerging Markets
If you would invest 4,192 in Vanguard Small Cap Value on September 12, 2024 and sell it today you would earn a total of 858.00 from holding Vanguard Small Cap Value or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vanguard Small Cap Value vs. Emerging Markets Breakout
Performance |
| Timeline |
| Vanguard Small Cap |
| Emerging Markets Breakout |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vanguard Small and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small and Emerging Markets
The main advantage of trading using opposite Vanguard Small and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Vanguard Small vs. Jp Morgan Smartretirement | Vanguard Small vs. Sa Worldwide Moderate | Vanguard Small vs. Fidelity Managed Retirement | Vanguard Small vs. Qs Moderate Growth |
| Emerging Markets vs. Amg River Road | Emerging Markets vs. Vanguard Small Cap Value | Emerging Markets vs. Omni Small Cap Value | Emerging Markets vs. Lord Abbett Small |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |