Correlation Between Vanguard Mega and Invesco QQQ
Can any of the company-specific risk be diversified away by investing in both Vanguard Mega and Invesco QQQ 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 Mega and Invesco QQQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Mega Cap and Invesco QQQ Trust, you can compare the effects of market volatilities on Vanguard Mega and Invesco QQQ 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 Mega with a short position of Invesco QQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Mega and Invesco QQQ.
Diversification Opportunities for Vanguard Mega and Invesco QQQ
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Invesco is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Mega Cap and Invesco QQQ Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco QQQ Trust and Vanguard Mega 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 Mega Cap are associated (or correlated) with Invesco QQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco QQQ Trust has no effect on the direction of Vanguard Mega i.e., Vanguard Mega and Invesco QQQ go up and down completely randomly.
Pair Corralation between Vanguard Mega and Invesco QQQ
Considering the 90-day investment horizon Vanguard Mega is expected to generate 1.22 times less return on investment than Invesco QQQ. But when comparing it to its historical volatility, Vanguard Mega Cap is 1.03 times less risky than Invesco QQQ. It trades about 0.09 of its potential returns per unit of risk. Invesco QQQ Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 58,598 in Invesco QQQ Trust on September 12, 2025 and sell it today you would earn a total of 3,964 from holding Invesco QQQ Trust or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Mega Cap vs. Invesco QQQ Trust
Performance |
| Timeline |
| Vanguard Mega Cap |
| Invesco QQQ Trust |
Vanguard Mega and Invesco QQQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Mega and Invesco QQQ
The main advantage of trading using opposite Vanguard Mega and Invesco QQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Mega position performs unexpectedly, Invesco QQQ 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 Invesco QQQ will offset losses from the drop in Invesco QQQ's long position.| Vanguard Mega vs. Vanguard Mid Cap Growth | Vanguard Mega vs. Vanguard Mid Cap Growth | Vanguard Mega vs. Vanguard Mid Cap Value | Vanguard Mega vs. Vanguard Small Cap Growth |
| Invesco QQQ vs. Vanguard Growth Index | Invesco QQQ vs. Vanguard Growth Index | Invesco QQQ vs. Vanguard Institutional Index | Invesco QQQ vs. Vanguard Total Bond |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world |