Correlation Between Vanguard Utilities and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Vanguard Utilities and IShares ESG 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 Utilities and IShares ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Utilities Index and iShares ESG Aware, you can compare the effects of market volatilities on Vanguard Utilities and IShares ESG 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 Utilities with a short position of IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Utilities and IShares ESG.
Diversification Opportunities for Vanguard Utilities and IShares ESG
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and IShares is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Utilities Index and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware and Vanguard Utilities 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 Utilities Index are associated (or correlated) with IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of Vanguard Utilities i.e., Vanguard Utilities and IShares ESG go up and down completely randomly.
Pair Corralation between Vanguard Utilities and IShares ESG
Considering the 90-day investment horizon Vanguard Utilities Index is expected to generate 1.04 times more return on investment than IShares ESG. However, Vanguard Utilities is 1.04 times more volatile than iShares ESG Aware. It trades about 0.1 of its potential returns per unit of risk. iShares ESG Aware is currently generating about 0.04 per unit of risk. If you would invest 18,359 in Vanguard Utilities Index on August 27, 2025 and sell it today you would earn a total of 898.00 from holding Vanguard Utilities Index or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Utilities Index vs. iShares ESG Aware
Performance |
| Timeline |
| Vanguard Utilities Index |
| iShares ESG Aware |
Vanguard Utilities and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Utilities and IShares ESG
The main advantage of trading using opposite Vanguard Utilities and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Utilities position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.| Vanguard Utilities vs. Ultimus Managers Trust | Vanguard Utilities vs. American Beacon Select | Vanguard Utilities vs. Direxion Daily SP | Vanguard Utilities vs. EA Series Trust |
| IShares ESG vs. Strategy Shares | IShares ESG vs. Freedom Day Dividend | IShares ESG vs. Franklin Templeton ETF | IShares ESG vs. iShares MSCI China |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |