Correlation Between Investec Emerging and Vanguard Developed
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Vanguard Developed 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 Investec Emerging and Vanguard Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Vanguard Developed Markets, you can compare the effects of market volatilities on Investec Emerging and Vanguard Developed 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 Investec Emerging with a short position of Vanguard Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Vanguard Developed.
Diversification Opportunities for Investec Emerging and Vanguard Developed
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Investec and Vanguard is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Vanguard Developed Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Developed and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Vanguard Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Developed has no effect on the direction of Investec Emerging i.e., Investec Emerging and Vanguard Developed go up and down completely randomly.
Pair Corralation between Investec Emerging and Vanguard Developed
Assuming the 90 days horizon Investec Emerging Markets is expected to under-perform the Vanguard Developed. In addition to that, Investec Emerging is 5.82 times more volatile than Vanguard Developed Markets. It trades about -0.16 of its total potential returns per unit of risk. Vanguard Developed Markets is currently generating about 0.32 per unit of volatility. If you would invest 1,517 in Vanguard Developed Markets on October 6, 2025 and sell it today you would earn a total of 54.00 from holding Vanguard Developed Markets or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Vanguard Developed Markets
Performance |
| Timeline |
| Investec Emerging Markets |
| Vanguard Developed |
Investec Emerging and Vanguard Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Vanguard Developed
The main advantage of trading using opposite Investec Emerging and Vanguard Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Vanguard Developed 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 Vanguard Developed will offset losses from the drop in Vanguard Developed's long position.| Investec Emerging vs. Ab Select Longshort | Investec Emerging vs. Angel Oak Multi Strategy | Investec Emerging vs. T Rowe Price | Investec Emerging vs. The National Tax Free |
| Vanguard Developed vs. Putnam Money Market | Vanguard Developed vs. John Hancock Money | Vanguard Developed vs. Profunds Money | Vanguard Developed vs. Tiaa Cref Life Money |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |