Correlation Between Vanguard Total and Calvert High
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Calvert High 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 Calvert High 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 Calvert High Yield, you can compare the effects of market volatilities on Vanguard Total and Calvert High 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 Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Calvert High.
Diversification Opportunities for Vanguard Total and Calvert High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Calvert is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield 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 Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Vanguard Total i.e., Vanguard Total and Calvert High go up and down completely randomly.
Pair Corralation between Vanguard Total and Calvert High
Assuming the 90 days horizon Vanguard Total Stock is expected to generate 4.35 times more return on investment than Calvert High. However, Vanguard Total is 4.35 times more volatile than Calvert High Yield. It trades about 0.25 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.28 per unit of risk. If you would invest 14,141 in Vanguard Total Stock on May 31, 2025 and sell it today you would earn a total of 1,384 from holding Vanguard Total Stock or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total Stock vs. Calvert High Yield
Performance |
| Timeline |
| Vanguard Total Stock |
| Calvert High Yield |
Vanguard Total and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Calvert High
The main advantage of trading using opposite Vanguard Total and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Calvert High 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 Calvert High will offset losses from the drop in Calvert High's long position.| Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard 500 Index | Vanguard Total vs. Vanguard Reit Index |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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