Correlation Between Vanguard Growth and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both Vanguard Growth and Barclays ETN 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 Barclays ETN 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 Barclays ETN Select, you can compare the effects of market volatilities on Vanguard Growth and Barclays ETN 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 Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Growth and Barclays ETN.
Diversification Opportunities for Vanguard Growth and Barclays ETN
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanguard and Barclays is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index and Barclays ETN Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN Select 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 Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN Select has no effect on the direction of Vanguard Growth i.e., Vanguard Growth and Barclays ETN go up and down completely randomly.
Pair Corralation between Vanguard Growth and Barclays ETN
Considering the 90-day investment horizon Vanguard Growth is expected to generate 1.69 times less return on investment than Barclays ETN. In addition to that, Vanguard Growth is 1.28 times more volatile than Barclays ETN Select. It trades about 0.09 of its total potential returns per unit of risk. Barclays ETN Select is currently generating about 0.2 per unit of volatility. If you would invest 2,390 in Barclays ETN Select on August 24, 2024 and sell it today you would earn a total of 589.00 from holding Barclays ETN Select or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Growth Index vs. Barclays ETN Select
Performance |
| Timeline |
| Vanguard Growth Index |
| Barclays ETN Select |
Vanguard Growth and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Growth and Barclays ETN
The main advantage of trading using opposite Vanguard Growth and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Growth position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| Vanguard Growth vs. Vanguard Value Index | Vanguard Growth vs. Vanguard Information Technology | Vanguard Growth vs. Vanguard Small Cap Growth | Vanguard Growth vs. Vanguard Dividend Appreciation |
| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. First Trust North | Barclays ETN vs. InfraCap MLP ETF |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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