Correlation Between Vanguard Total and Fidelity
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Fidelity 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 Total and Fidelity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Stock and Fidelity Sustainability Index, you can compare the effects of market volatilities on Vanguard Total and Fidelity 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 Total with a short position of Fidelity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Fidelity.
Diversification Opportunities for Vanguard Total and Fidelity
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between VANGUARD and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and Fidelity Sustainability Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainability and Vanguard Total 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 Total Stock are associated (or correlated) with Fidelity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainability has no effect on the direction of Vanguard Total i.e., Vanguard Total and Fidelity go up and down completely randomly.
Pair Corralation between Vanguard Total and Fidelity
Assuming the 90 days horizon Vanguard Total Stock is expected to generate 0.92 times more return on investment than Fidelity. However, Vanguard Total Stock is 1.09 times less risky than Fidelity. It trades about 0.12 of its potential returns per unit of risk. Fidelity Sustainability Index is currently generating about 0.1 per unit of risk. If you would invest 12,143 in Vanguard Total Stock on September 1, 2024 and sell it today you would earn a total of 2,449 from holding Vanguard Total Stock or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Vanguard Total Stock vs. Fidelity Sustainability Index
Performance |
| Timeline |
| Vanguard Total Stock |
| Fidelity Sustainability |
Vanguard Total and Fidelity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Fidelity
The main advantage of trading using opposite Vanguard Total and Fidelity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Fidelity 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 Fidelity will offset losses from the drop in Fidelity's long position.| Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Small Cap Index | Vanguard Total vs. Vanguard Reit Index |
| Fidelity vs. Fidelity Large Cap | Fidelity vs. Fidelity Intl Sustainability | Fidelity vs. Fidelity Large Cap | Fidelity vs. Fidelity Small 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |