Correlation Between Vanguard Target and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Vanguard Target and Ep 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 Target and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Target Retirement and Ep Emerging Markets, you can compare the effects of market volatilities on Vanguard Target and Ep 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 Target with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Target and Ep Emerging.
Diversification Opportunities for Vanguard Target and Ep Emerging
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and EPEIX is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Target Retirement and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets and Vanguard Target 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 Target Retirement are associated (or correlated) with Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Vanguard Target i.e., Vanguard Target and Ep Emerging go up and down completely randomly.
Pair Corralation between Vanguard Target and Ep Emerging
Assuming the 90 days horizon Vanguard Target is expected to generate 2.46 times less return on investment than Ep Emerging. But when comparing it to its historical volatility, Vanguard Target Retirement is 1.03 times less risky than Ep Emerging. It trades about 0.14 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,129 in Ep Emerging Markets on May 29, 2025 and sell it today you would earn a total of 57.00 from holding Ep Emerging Markets or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vanguard Target Retirement vs. Ep Emerging Markets
Performance |
| Timeline |
| Vanguard Target Reti |
| Ep Emerging Markets |
Vanguard Target and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Target and Ep Emerging
The main advantage of trading using opposite Vanguard Target and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Target position performs unexpectedly, Ep 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Vanguard Target vs. Vanguard Target Retirement | Vanguard Target vs. Vanguard Target Retirement | Vanguard Target vs. Vanguard Target Retirement | Vanguard Target vs. Vanguard Target Retirement |
| Ep Emerging vs. Investec Emerging Markets | Ep Emerging vs. Ashmore Emerging Markets | Ep Emerging vs. Shelton Emerging Markets | Ep Emerging vs. Doubleline Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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