Pair Correlation Between USAA Core and Vanguard Total

This module allows you to analyze existing cross correlation between USAA Core Intermediate Term Bond ETF 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 ETF is expected to generate 0.98 times more return on investment than Vanguard Total. However, USAA Core Intermediate Term Bond ETF is 1.02 times less risky than Vanguard Total. It trades about -0.06 of its potential returns per unit of risk. Vanguard Total Bond Market ETF is currently generating about -0.1 per unit of risk. If you would invest  4,887  in USAA Core Intermediate Term Bond ETF on March 22, 2018 and sell it today you would lose (20.00)  from holding USAA Core Intermediate Term Bond ETF or give up 0.41% of portfolio value over 30 days.

Pair Corralation between USAA Core and Vanguard Total

0.79
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor 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 ETF 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 
USAA Core Intermediate  
0 

Risk-Adjusted Performance

Over the last 30 days USAA Core Intermediate Term Bond ETF has generated negative risk-adjusted returns adding no value to investors with long positions.
Vanguard Total Bond  
0 

Risk-Adjusted Performance

Over the last 30 days Vanguard Total Bond Market ETF has generated negative risk-adjusted returns adding no value to investors with long positions.

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