Correlation Between EA Series and Vanguard Utilities
Can any of the company-specific risk be diversified away by investing in both EA Series and Vanguard Utilities 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 EA Series and Vanguard Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and Vanguard Utilities Index, you can compare the effects of market volatilities on EA Series and Vanguard Utilities 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 EA Series with a short position of Vanguard Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Vanguard Utilities.
Diversification Opportunities for EA Series and Vanguard Utilities
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between DRLL and Vanguard is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and Vanguard Utilities Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Utilities Index and EA Series 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 EA Series Trust are associated (or correlated) with Vanguard Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Utilities Index has no effect on the direction of EA Series i.e., EA Series and Vanguard Utilities go up and down completely randomly.
Pair Corralation between EA Series and Vanguard Utilities
Given the investment horizon of 90 days EA Series Trust is expected to under-perform the Vanguard Utilities. In addition to that, EA Series is 1.59 times more volatile than Vanguard Utilities Index. It trades about 0.0 of its total potential returns per unit of risk. Vanguard Utilities Index is currently generating about 0.12 per unit of volatility. If you would invest 18,232 in Vanguard Utilities Index on August 28, 2025 and sell it today you would earn a total of 1,025 from holding Vanguard Utilities Index or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. Vanguard Utilities Index
Performance |
| Timeline |
| EA Series Trust |
| Vanguard Utilities Index |
EA Series and Vanguard Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and Vanguard Utilities
The main advantage of trading using opposite EA Series and Vanguard Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, Vanguard Utilities 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 Utilities will offset losses from the drop in Vanguard Utilities' long position.| EA Series vs. Ultimus Managers Trust | EA Series vs. American Beacon Select | EA Series vs. Direxion Daily SP | EA Series vs. Global X MLP |
| Vanguard Utilities vs. Ultimus Managers Trust | Vanguard Utilities vs. American Beacon Select | Vanguard Utilities vs. Direxion Daily SP | Vanguard Utilities vs. EA Series 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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