Correlation Between Vanguard High-yield and Summit Global
Can any of the company-specific risk be diversified away by investing in both Vanguard High-yield and Summit Global 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 High-yield and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard High Yield Tax Exempt and Summit Global Investments, you can compare the effects of market volatilities on Vanguard High-yield and Summit Global 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 High-yield with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard High-yield and Summit Global.
Diversification Opportunities for Vanguard High-yield and Summit Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VANGUARD and Summit is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard High Yield Tax Exempt and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Vanguard High-yield 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 High Yield Tax Exempt are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Vanguard High-yield i.e., Vanguard High-yield and Summit Global go up and down completely randomly.
Pair Corralation between Vanguard High-yield and Summit Global
Assuming the 90 days horizon Vanguard High Yield Tax Exempt is expected to under-perform the Summit Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vanguard High Yield Tax Exempt is 7.09 times less risky than Summit Global. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Summit Global Investments is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,729 in Summit Global Investments on September 2, 2025 and sell it today you would earn a total of 46.00 from holding Summit Global Investments or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard High Yield Tax Exempt vs. Summit Global Investments
Performance |
| Timeline |
| Vanguard High Yield |
| Summit Global Investments |
Vanguard High-yield and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard High-yield and Summit Global
The main advantage of trading using opposite Vanguard High-yield and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard High-yield position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Vanguard High-yield vs. Invesco Global Health | Vanguard High-yield vs. Allianzgi Health Sciences | Vanguard High-yield vs. Alger Health Sciences | Vanguard High-yield vs. Lord Abbett Health |
| Summit Global vs. Nationwide Bailard Technology | Summit Global vs. Pgim Jennison Technology | Summit Global vs. Franklin Biotechnology Discovery | Summit Global vs. Global Technology 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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