Correlation Between Vanguard Funds and Global X
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By analyzing existing cross correlation between Vanguard Funds Public and Global X China, you can compare the effects of market volatilities on Vanguard Funds and Global X 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 Funds with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Funds and Global X.
Diversification Opportunities for Vanguard Funds and Global X
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Global is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Funds Public and Global X China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X China and Vanguard Funds 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 Funds Public are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X China has no effect on the direction of Vanguard Funds i.e., Vanguard Funds and Global X go up and down completely randomly.
Pair Corralation between Vanguard Funds and Global X
Assuming the 90 days trading horizon Vanguard Funds Public is expected to generate 0.24 times more return on investment than Global X. However, Vanguard Funds Public is 4.2 times less risky than Global X. It trades about 0.14 of its potential returns per unit of risk. Global X China is currently generating about -0.05 per unit of risk. If you would invest 10,785 in Vanguard Funds Public on September 14, 2024 and sell it today you would earn a total of 239.00 from holding Vanguard Funds Public or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vanguard Funds Public vs. Global X China
Performance |
| Timeline |
| Vanguard Funds Public |
| Global X China |
Vanguard Funds and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Funds and Global X
The main advantage of trading using opposite Vanguard Funds and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Funds position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Vanguard Funds vs. Vanguard ESG Developed | Vanguard Funds vs. Vanguard Funds Public | Vanguard Funds vs. Vanguard Funds PLC | Vanguard Funds vs. Vanguard Funds Public |
| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X vs. iShares VII PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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