Correlation Between Vanguard Emerging and Wasatch Emerging
Can any of the company-specific risk be diversified away by investing in both Vanguard Emerging and Wasatch Emerging 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 Emerging and Wasatch Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Emerging Markets and Wasatch Emerging Markets, you can compare the effects of market volatilities on Vanguard Emerging and Wasatch Emerging 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 Emerging with a short position of Wasatch Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Emerging and Wasatch Emerging.
Diversification Opportunities for Vanguard Emerging and Wasatch Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Wasatch is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Emerging Markets and Wasatch Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Emerging Markets and Vanguard Emerging 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 Emerging Markets are associated (or correlated) with Wasatch Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Emerging Markets has no effect on the direction of Vanguard Emerging i.e., Vanguard Emerging and Wasatch Emerging go up and down completely randomly.
Pair Corralation between Vanguard Emerging and Wasatch Emerging
Assuming the 90 days horizon Vanguard Emerging is expected to generate 1.39 times less return on investment than Wasatch Emerging. In addition to that, Vanguard Emerging is 1.05 times more volatile than Wasatch Emerging Markets. It trades about 0.15 of its total potential returns per unit of risk. Wasatch Emerging Markets is currently generating about 0.21 per unit of volatility. If you would invest 248.00 in Wasatch Emerging Markets on April 3, 2025 and sell it today you would earn a total of 40.00 from holding Wasatch Emerging Markets or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Emerging Markets vs. Wasatch Emerging Markets
Performance |
| Timeline |
| Vanguard Emerging Markets |
| Wasatch Emerging Markets |
Vanguard Emerging and Wasatch Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Emerging and Wasatch Emerging
The main advantage of trading using opposite Vanguard Emerging and Wasatch Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Emerging position performs unexpectedly, Wasatch Emerging 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 Wasatch Emerging will offset losses from the drop in Wasatch Emerging's long position.| Vanguard Emerging vs. Hennessy Bp Energy | Vanguard Emerging vs. Gamco Natural Resources | Vanguard Emerging vs. Short Oil Gas | Vanguard Emerging vs. Global Resources Fund |
| Wasatch Emerging vs. Dreyfus Government Cash | Wasatch Emerging vs. Ridgeworth Seix Government | Wasatch Emerging vs. Voya Government Money | Wasatch Emerging vs. Us Government Securities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance |