Correlation Between IShares Core and Vanguard Dividend
Can any of the company-specific risk be diversified away by investing in both IShares Core and Vanguard Dividend 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 Core and Vanguard Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Vanguard Dividend Growth, you can compare the effects of market volatilities on IShares Core and Vanguard Dividend 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 Core with a short position of Vanguard Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Vanguard Dividend.
Diversification Opportunities for IShares Core and Vanguard Dividend
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Vanguard is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Vanguard Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Dividend Growth and IShares Core 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 Core SP are associated (or correlated) with Vanguard Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Dividend Growth has no effect on the direction of IShares Core i.e., IShares Core and Vanguard Dividend go up and down completely randomly.
Pair Corralation between IShares Core and Vanguard Dividend
Given the investment horizon of 90 days IShares Core is expected to generate 1.1 times less return on investment than Vanguard Dividend. In addition to that, IShares Core is 1.64 times more volatile than Vanguard Dividend Growth. It trades about 0.04 of its total potential returns per unit of risk. Vanguard Dividend Growth is currently generating about 0.08 per unit of volatility. If you would invest 3,204 in Vanguard Dividend Growth on October 7, 2025 and sell it today you would earn a total of 99.00 from holding Vanguard Dividend Growth or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. Vanguard Dividend Growth
Performance |
| Timeline |
| iShares Core SP |
| Vanguard Dividend Growth |
IShares Core and Vanguard Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Vanguard Dividend
The main advantage of trading using opposite IShares Core and Vanguard Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Vanguard Dividend 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 Dividend will offset losses from the drop in Vanguard Dividend's long position.| IShares Core vs. iShares Core SP | IShares Core vs. iShares SP 100 | IShares Core vs. iShares Russell Mid Cap | IShares Core vs. iShares Semiconductor ETF |
| Vanguard Dividend vs. iShares Russell Mid Cap | Vanguard Dividend vs. Financial Select Sector | Vanguard Dividend vs. iShares Russell 1000 | Vanguard Dividend vs. iShares SP 500 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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