Correlation Between SavvyLong NVDA and Vanguard Health
Can any of the company-specific risk be diversified away by investing in both SavvyLong NVDA and Vanguard Health 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 SavvyLong NVDA and Vanguard Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SavvyLong NVDA ETF and Vanguard Health Care, you can compare the effects of market volatilities on SavvyLong NVDA and Vanguard Health 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 SavvyLong NVDA with a short position of Vanguard Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SavvyLong NVDA and Vanguard Health.
Diversification Opportunities for SavvyLong NVDA and Vanguard Health
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SavvyLong and Vanguard is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SavvyLong NVDA ETF and Vanguard Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Health Care and SavvyLong NVDA 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 SavvyLong NVDA ETF are associated (or correlated) with Vanguard Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Health Care has no effect on the direction of SavvyLong NVDA i.e., SavvyLong NVDA and Vanguard Health go up and down completely randomly.
Pair Corralation between SavvyLong NVDA and Vanguard Health
Assuming the 90 days trading horizon SavvyLong NVDA ETF is expected to generate 5.0 times more return on investment than Vanguard Health. However, SavvyLong NVDA is 5.0 times more volatile than Vanguard Health Care. It trades about 0.04 of its potential returns per unit of risk. Vanguard Health Care is currently generating about 0.2 per unit of risk. If you would invest 2,905 in SavvyLong NVDA ETF on September 9, 2025 and sell it today you would earn a total of 187.00 from holding SavvyLong NVDA ETF or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SavvyLong NVDA ETF vs. Vanguard Health Care
Performance |
| Timeline |
| SavvyLong NVDA ETF |
| Vanguard Health Care |
SavvyLong NVDA and Vanguard Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SavvyLong NVDA and Vanguard Health
The main advantage of trading using opposite SavvyLong NVDA and Vanguard Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SavvyLong NVDA position performs unexpectedly, Vanguard Health 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 Health will offset losses from the drop in Vanguard Health's long position.| SavvyLong NVDA vs. SavvyLong Cameco ETF | SavvyLong NVDA vs. SavvyLong 2X CIBC | SavvyLong NVDA vs. SavvyLong AMZN ETF | SavvyLong NVDA vs. SavvyLong TSLA ETF |
| Vanguard Health vs. Vanguard Health Care | Vanguard Health vs. Vanguard Financials Index | Vanguard Health vs. Vanguard Russell 1000 | Vanguard Health vs. iShares Russell 3000 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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