Correlation Between Vanguard Total and Xtrackers National
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Xtrackers National 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 Xtrackers National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Bond and Xtrackers National Critical, you can compare the effects of market volatilities on Vanguard Total and Xtrackers National 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 Xtrackers National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Xtrackers National.
Diversification Opportunities for Vanguard Total and Xtrackers National
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vanguard and Xtrackers is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Bond and Xtrackers National Critical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers National 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 Bond are associated (or correlated) with Xtrackers National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers National has no effect on the direction of Vanguard Total i.e., Vanguard Total and Xtrackers National go up and down completely randomly.
Pair Corralation between Vanguard Total and Xtrackers National
Considering the 90-day investment horizon Vanguard Total is expected to generate 1.82 times less return on investment than Xtrackers National. But when comparing it to its historical volatility, Vanguard Total Bond is 4.62 times less risky than Xtrackers National. It trades about 0.08 of its potential returns per unit of risk. Xtrackers National Critical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,662 in Xtrackers National Critical on October 9, 2025 and sell it today you would earn a total of 53.00 from holding Xtrackers National Critical or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total Bond vs. Xtrackers National Critical
Performance |
| Timeline |
| Vanguard Total Bond |
| Xtrackers National |
Vanguard Total and Xtrackers National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Xtrackers National
The main advantage of trading using opposite Vanguard Total and Xtrackers National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Xtrackers National 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 Xtrackers National will offset losses from the drop in Xtrackers National's long position.| Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Total Bond |
| Xtrackers National vs. US Vegan Climate | Xtrackers National vs. WisdomTree Global High | Xtrackers National vs. ARK Israel Innovative | Xtrackers National vs. Innovator ETFs Trust |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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