This module allows you to analyze existing cross correlation between Vanguard U S Momentum Factor E and DOW. You can compare the effects of market volatilities on Vanguard U and DOW 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 U with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Vanguard U and DOW.
|Horizon||30 Days Login to change|
Predicted Return Density
Vanguard U S Momentum Factor E vs. DOW
Given the investment horizon of 30 days, Vanguard U S Momentum Factor E is expected to under-perform the DOW. In addition to that, Vanguard U is 1.03 times more volatile than DOW. It trades about -0.04 of its total potential returns per unit of risk. DOW is currently generating about -0.03 per unit of volatility. If you would invest 2,734,919 in DOW on September 21, 2019 and sell it today you would lose (57,899) from holding DOW or give up 2.12% of portfolio value over 30 days.
Pair Corralation between Vanguard U and DOW
|Time Period||3 Months [change]|
Diversification Opportunities for Vanguard U and DOW
Overlapping area represents the amount of risk that can be diversified away by holding Vanguard U S Momentum Factor E and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Vanguard U 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 U S Momentum Factor E are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Vanguard U i.e. Vanguard U and DOW go up and down completely randomly.
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