Correlation Between Vanguard Total and Midas Special
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Midas Special 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 Midas Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Stock and Midas Special Fund, you can compare the effects of market volatilities on Vanguard Total and Midas Special 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 Midas Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Midas Special.
Diversification Opportunities for Vanguard Total and Midas Special
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Midas is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and Midas Special Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midas Special 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 Stock are associated (or correlated) with Midas Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midas Special has no effect on the direction of Vanguard Total i.e., Vanguard Total and Midas Special go up and down completely randomly.
Pair Corralation between Vanguard Total and Midas Special
Assuming the 90 days horizon Vanguard Total is expected to generate 1.9 times less return on investment than Midas Special. But when comparing it to its historical volatility, Vanguard Total Stock is 1.38 times less risky than Midas Special. It trades about 0.12 of its potential returns per unit of risk. Midas Special Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,840 in Midas Special Fund on August 20, 2025 and sell it today you would earn a total of 402.00 from holding Midas Special Fund or generate 10.47% 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 Stock vs. Midas Special Fund
Performance |
| Timeline |
| Vanguard Total Stock |
| Midas Special |
Vanguard Total and Midas Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Midas Special
The main advantage of trading using opposite Vanguard Total and Midas Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Midas Special 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 Midas Special will offset losses from the drop in Midas Special's long position.| Vanguard Total vs. Prudential Qma Large Cap | Vanguard Total vs. Transamerica Large Cap | Vanguard Total vs. Avantis Large Cap | Vanguard Total vs. Siit Large Cap |
| Midas Special vs. Midas Fund Midas | Midas Special vs. T Rowe Price | Midas Special vs. Fidelity International Discovery | Midas Special vs. Ab California Portfolio |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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