Correlation Between Vanguard Funds and LOral SA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vanguard Funds and LOral SA 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 Funds and LOral SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Funds Public and LOral SA, you can compare the effects of market volatilities on Vanguard Funds and LOral SA 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 LOral SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Funds and LOral SA.

Diversification Opportunities for Vanguard Funds and LOral SA

VanguardLOralDiversified AwayVanguardLOralDiversified Away100%
0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Vanguard and LOral is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Funds Public and LOral SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOral SA 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 LOral SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOral SA has no effect on the direction of Vanguard Funds i.e., Vanguard Funds and LOral SA go up and down completely randomly.

Pair Corralation between Vanguard Funds and LOral SA

Assuming the 90 days trading horizon Vanguard Funds Public is expected to generate 0.47 times more return on investment than LOral SA. However, Vanguard Funds Public is 2.14 times less risky than LOral SA. It trades about 0.13 of its potential returns per unit of risk. LOral SA is currently generating about 0.03 per unit of risk. If you would invest  10,976  in Vanguard Funds Public on November 21, 2024 and sell it today you would earn a total of  175.00  from holding Vanguard Funds Public or generate 1.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy77.27%
ValuesDaily Returns

Vanguard Funds Public  vs.  LOral SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510
JavaScript chart by amCharts 3.21.15VUSA LOR
       Timeline  
Vanguard Funds Public 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Over the last 90 days Vanguard Funds Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vanguard Funds is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
LOral SA 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in LOral SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, LOral SA may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb320330340350360370

Vanguard Funds and LOral SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.74-2.06-1.37-0.680.01270.761.522.283.04 0.10.20.30.4
JavaScript chart by amCharts 3.21.15VUSA LOR
       Returns  

Pair Trading with Vanguard Funds and LOral SA

The main advantage of trading using opposite Vanguard Funds and LOral SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Funds position performs unexpectedly, LOral SA 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 LOral SA will offset losses from the drop in LOral SA's long position.
The idea behind Vanguard Funds Public and LOral SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators