Correlation Between Vanguard Value and Hashdex Nasdaq
Can any of the company-specific risk be diversified away by investing in both Vanguard Value and Hashdex Nasdaq 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 Value and Hashdex Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Value Index and Hashdex Nasdaq Crypto, you can compare the effects of market volatilities on Vanguard Value and Hashdex Nasdaq 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 Value with a short position of Hashdex Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Value and Hashdex Nasdaq.
Diversification Opportunities for Vanguard Value and Hashdex Nasdaq
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and Hashdex is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Value Index and Hashdex Nasdaq Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashdex Nasdaq Crypto and Vanguard Value 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 Value Index are associated (or correlated) with Hashdex Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashdex Nasdaq Crypto has no effect on the direction of Vanguard Value i.e., Vanguard Value and Hashdex Nasdaq go up and down completely randomly.
Pair Corralation between Vanguard Value and Hashdex Nasdaq
Considering the 90-day investment horizon Vanguard Value is expected to generate 8.77 times less return on investment than Hashdex Nasdaq. But when comparing it to its historical volatility, Vanguard Value Index is 1.77 times less risky than Hashdex Nasdaq. It trades about 0.03 of its potential returns per unit of risk. Hashdex Nasdaq Crypto is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,125 in Hashdex Nasdaq Crypto on March 28, 2025 and sell it today you would earn a total of 603.00 from holding Hashdex Nasdaq Crypto or generate 28.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Value Index vs. Hashdex Nasdaq Crypto
Performance |
| Timeline |
| Vanguard Value Index |
| Hashdex Nasdaq Crypto |
Vanguard Value and Hashdex Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Value and Hashdex Nasdaq
The main advantage of trading using opposite Vanguard Value and Hashdex Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Value position performs unexpectedly, Hashdex Nasdaq 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 Hashdex Nasdaq will offset losses from the drop in Hashdex Nasdaq's long position.| Vanguard Value vs. Vanguard Growth Index | Vanguard Value vs. Vanguard Small Cap Value | Vanguard Value vs. Vanguard Mid Cap Value | Vanguard Value vs. Vanguard Small Cap Index |
| Hashdex Nasdaq vs. Grayscale Funds Trust | Hashdex Nasdaq vs. ProShares Trust | Hashdex Nasdaq vs. iShares Ethereum Trust | Hashdex Nasdaq vs. ProShares Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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