Correlation Between Vanguard Total and Short Intermediate
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Short Intermediate 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 Short Intermediate 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 Short Intermediate Bond Fund, you can compare the effects of market volatilities on Vanguard Total and Short Intermediate 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 Short Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Short Intermediate.
Diversification Opportunities for Vanguard Total and Short Intermediate
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanguard and Short is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond 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 Short Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Vanguard Total i.e., Vanguard Total and Short Intermediate go up and down completely randomly.
Pair Corralation between Vanguard Total and Short Intermediate
Assuming the 90 days horizon Vanguard Total International is expected to generate 4.63 times more return on investment than Short Intermediate. However, Vanguard Total is 4.63 times more volatile than Short Intermediate Bond Fund. It trades about 0.35 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.14 per unit of risk. If you would invest 13,063 in Vanguard Total International on April 17, 2025 and sell it today you would earn a total of 1,765 from holding Vanguard Total International or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Vanguard Total International vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| Vanguard Total Inter |
| Short Intermediate Bond |
Vanguard Total and Short Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Short Intermediate
The main advantage of trading using opposite Vanguard Total and Short Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Short Intermediate 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 Short Intermediate will offset losses from the drop in Short Intermediate's long position.| Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Extended Market | Vanguard Total vs. Vanguard Small Cap Index | Vanguard Total vs. Vanguard Mid Cap Index |
| Short Intermediate vs. Small Pany Fund | Short Intermediate vs. Balanced Fund Institutional | Short Intermediate vs. Income Fund Institutional | Short Intermediate vs. Credit Suisse Floating |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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