Correlation Between Vanguard Dividend and ProShares
Can any of the company-specific risk be diversified away by investing in both Vanguard Dividend and ProShares 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 Dividend and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Dividend Growth and ProShares K 1 Free, you can compare the effects of market volatilities on Vanguard Dividend and ProShares 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 Dividend with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Dividend and ProShares.
Diversification Opportunities for Vanguard Dividend and ProShares
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vanguard and ProShares is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Dividend Growth and ProShares K 1 Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares K 1 and Vanguard Dividend 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 Dividend Growth are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares K 1 has no effect on the direction of Vanguard Dividend i.e., Vanguard Dividend and ProShares go up and down completely randomly.
Pair Corralation between Vanguard Dividend and ProShares
Assuming the 90 days horizon Vanguard Dividend Growth is expected to under-perform the ProShares. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vanguard Dividend Growth is 1.3 times less risky than ProShares. The mutual fund trades about -0.11 of its potential returns per unit of risk. The ProShares K 1 Free is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,719 in ProShares K 1 Free on January 26, 2024 and sell it today you would earn a total of 125.00 from holding ProShares K 1 Free or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Dividend Growth vs. ProShares K 1 Free
Performance |
| Timeline |
| Vanguard Dividend Growth |
| ProShares K 1 |
Vanguard Dividend and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Dividend and ProShares
The main advantage of trading using opposite Vanguard Dividend and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Dividend position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Vanguard Dividend vs. Vanguard Equity Income | Vanguard Dividend vs. Vanguard Wellesley Income | Vanguard Dividend vs. Vanguard Health Care | Vanguard Dividend vs. Vanguard Wellington Fund |
| ProShares vs. United States 12 | ProShares vs. Credit Suisse X Links | ProShares vs. Invesco DB Oil | ProShares vs. United States 12 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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