Pair Correlation Between USAA Core and Vanguard Total

This module allows you to analyze existing cross correlation between USAA Core Intermediate-Term Bond and Vanguard Total Bond Market ETF. You can compare the effects of market volatilities on USAA Core and Vanguard Total 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 USAA Core with a short position of Vanguard Total. See also your portfolio center. Please also check ongoing floating volatility patterns of USAA Core and Vanguard Total.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 USAA Core Intermediate-Term Bo  vs   Vanguard Total Bond Market ETF
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, USAA Core Intermediate-Term Bond is expected to under-perform the Vanguard Total. In addition to that, USAA Core is 1.11 times more volatile than Vanguard Total Bond Market ETF. It trades about -0.32 of its total potential returns per unit of risk. Vanguard Total Bond Market ETF is currently generating about -0.27 per unit of volatility. If you would invest  8,124  in Vanguard Total Bond Market ETF on December 23, 2017 and sell it today you would lose (59)  from holding Vanguard Total Bond Market ETF or give up 0.73% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between USAA Core and Vanguard Total
0.96

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding USAA Core Intermediate-Term Bo and Vanguard Total Bond Market ETF in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Bond and USAA Core 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 USAA Core Intermediate-Term Bond are associated (or correlated) with Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Bond has no effect on the direction of USAA Core i.e. USAA Core and Vanguard Total go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns