Correlation Between IShares USD and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both IShares USD and Vanguard Total 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 IShares USD and Vanguard Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares USD Green and Vanguard Total World, you can compare the effects of market volatilities on IShares USD and Vanguard Total 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 IShares USD with a short position of Vanguard Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares USD and Vanguard Total.
Diversification Opportunities for IShares USD and Vanguard Total
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Vanguard is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares USD Green and Vanguard Total World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total World and IShares USD 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 iShares USD Green are associated (or correlated) with Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total World has no effect on the direction of IShares USD i.e., IShares USD and Vanguard Total go up and down completely randomly.
Pair Corralation between IShares USD and Vanguard Total
Given the investment horizon of 90 days iShares USD Green is expected to generate 0.98 times more return on investment than Vanguard Total. However, iShares USD Green is 1.02 times less risky than Vanguard Total. It trades about 0.1 of its potential returns per unit of risk. Vanguard Total World is currently generating about 0.08 per unit of risk. If you would invest 4,183 in iShares USD Green on June 11, 2025 and sell it today you would earn a total of 630.00 from holding iShares USD Green or generate 15.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares USD Green vs. Vanguard Total World
Performance |
| Timeline |
| iShares USD Green |
| Vanguard Total World |
IShares USD and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares USD and Vanguard Total
The main advantage of trading using opposite IShares USD and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares USD position performs unexpectedly, Vanguard Total 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 Vanguard Total will offset losses from the drop in Vanguard Total's long position.| IShares USD vs. iShares ESG USD | IShares USD vs. iShares ESG 1 5 | IShares USD vs. iShares ESG Aggregate | IShares USD vs. iShares ESG Aware |
| Vanguard Total vs. Vanguard Total Corporate | Vanguard Total vs. Vanguard Emerging Markets | Vanguard Total vs. Vanguard Intermediate Term Treasury | Vanguard Total vs. Vanguard Total International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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