Correlation Between Vanguard Health and Nova Fund
Can any of the company-specific risk be diversified away by investing in both Vanguard Health and Nova Fund 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 Health and Nova Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Health Care and Nova Fund Class, you can compare the effects of market volatilities on Vanguard Health and Nova Fund 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 Health with a short position of Nova Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Health and Nova Fund.
Diversification Opportunities for Vanguard Health and Nova Fund
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and NOVA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Health Care and Nova Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Fund Class and Vanguard Health 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 Health Care are associated (or correlated) with Nova Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Fund Class has no effect on the direction of Vanguard Health i.e., Vanguard Health and Nova Fund go up and down completely randomly.
Pair Corralation between Vanguard Health and Nova Fund
Assuming the 90 days horizon Vanguard Health Care is expected to generate 0.82 times more return on investment than Nova Fund. However, Vanguard Health Care is 1.21 times less risky than Nova Fund. It trades about 0.23 of its potential returns per unit of risk. Nova Fund Class is currently generating about 0.11 per unit of risk. If you would invest 18,248 in Vanguard Health Care on September 7, 2025 and sell it today you would earn a total of 2,617 from holding Vanguard Health Care or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Health Care vs. Nova Fund Class
Performance |
| Timeline |
| Vanguard Health Care |
| Nova Fund Class |
Vanguard Health and Nova Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Health and Nova Fund
The main advantage of trading using opposite Vanguard Health and Nova Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Health position performs unexpectedly, Nova Fund 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 Nova Fund will offset losses from the drop in Nova Fund's long position.| Vanguard Health vs. Davis Financial Fund | Vanguard Health vs. Transamerica Financial Life | Vanguard Health vs. Vanguard Financials Index | Vanguard Health vs. Financials Ultrasector Profund |
| Nova Fund vs. Barings High Yield | Nova Fund vs. Ishares Aggregate Bond | Nova Fund vs. Morningstar Defensive Bond | Nova Fund vs. Maryland Tax Free 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |