Correlation Between Vanguard Explorer and Rice Hall

Can any of the company-specific risk be diversified away by investing in both Vanguard Explorer and Rice Hall 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 Explorer and Rice Hall into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vanguard Explorer Fund and Rice Hall James, you can compare the effects of market volatilities on Vanguard Explorer and Rice Hall 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 Explorer with a short position of Rice Hall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Explorer and Rice Hall.

Diversification Opportunities for Vanguard Explorer and Rice Hall

-0.14

Correlation Coefficient

Vanguard Explorer  Rice Hall

Good diversification

The 3 months correlation between Vanguard and Rice is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Explorer Fund and Rice Hall James in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rice Hall James and Vanguard Explorer 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 Explorer Fund are associated (or correlated) with Rice Hall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rice Hall James has no effect on the direction of Vanguard Explorer i.e., Vanguard Explorer and Rice Hall go up and down completely randomly.

Pair Corralation between Vanguard Explorer and Rice Hall

Assuming the 90 days horizon Vanguard Explorer Fund is expected to generate 0.17 times more return on investment than Rice Hall. However, Vanguard Explorer Fund is 5.78 times less risky than Rice Hall. It trades about 0.1 of its potential returns per unit of risk. Rice Hall James is currently generating about -0.05 per unit of risk. If you would invest  11,039  in Vanguard Explorer Fund on September 16, 2025 and sell it today you would earn a total of  1,419  from holding Vanguard Explorer Fund or generate 12.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vanguard Explorer Fund  vs.  Rice Hall James

Vanguard Explorer

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Explorer Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vanguard Explorer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rice Hall James

Risk-Adjusted Performance

Weakest

Over the last 90 days Rice Hall James has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Vanguard Explorer and Rice Hall

The main advantage of trading using opposite Vanguard Explorer and Rice Hall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Explorer position performs unexpectedly, Rice Hall 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 Rice Hall will offset losses from the drop in Rice Hall's long position.

The idea behind Vanguard Explorer Fund and Rice Hall James pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.