Correlation Between Vanguard Total and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Horizon Active 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 Total and Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total International and Horizon Active Risk, you can compare the effects of market volatilities on Vanguard Total and Horizon Active 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 Total with a short position of Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Horizon Active.
Diversification Opportunities for Vanguard Total and Horizon Active
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Horizon is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and Horizon Active Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Risk and Vanguard Total 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 Total International are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Risk has no effect on the direction of Vanguard Total i.e., Vanguard Total and Horizon Active go up and down completely randomly.
Pair Corralation between Vanguard Total and Horizon Active
Assuming the 90 days horizon Vanguard Total International is expected to generate 0.98 times more return on investment than Horizon Active. However, Vanguard Total International is 1.02 times less risky than Horizon Active. It trades about 0.15 of its potential returns per unit of risk. Horizon Active Risk is currently generating about 0.14 per unit of risk. If you would invest 2,261 in Vanguard Total International on June 9, 2025 and sell it today you would earn a total of 41.00 from holding Vanguard Total International or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total International vs. Horizon Active Risk
Performance |
| Timeline |
| Vanguard Total Inter |
| Horizon Active Risk |
Vanguard Total and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Horizon Active
The main advantage of trading using opposite Vanguard Total and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Vanguard Total vs. Principal Lifetime Hybrid | Vanguard Total vs. Wilmington Diversified Income | Vanguard Total vs. Fuller Thaler Behavioral | Vanguard Total vs. Aqr Diversified Arbitrage |
| Horizon Active vs. Horizon Active Risk | Horizon Active vs. Horizon Active Risk | Horizon Active vs. Horizon Active Asset | Horizon Active vs. Horizon Active Dividend |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |