Correlation Between Vanguard Reit and Congress Large

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

By analyzing existing cross correlation between Vanguard Reit Index and Congress Large Cap, you can compare the effects of market volatilities on Vanguard Reit and Congress Large 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 Reit with a short position of Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Reit and Congress Large.

Diversification Opportunities for Vanguard Reit and Congress Large

0.66

Correlation Coefficient

Vanguard Reit  Congress Large

Poor diversification

The 3 months correlation between Vanguard and Congress is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Reit Index and Congress Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap and Vanguard Reit 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 Reit Index are associated (or correlated) with Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Vanguard Reit i.e., Vanguard Reit and Congress Large go up and down completely randomly.

Pair Corralation between Vanguard Reit and Congress Large

Assuming the 90 days horizon Vanguard Reit is expected to generate 3.0 times less return on investment than Congress Large. In addition to that, Vanguard Reit is 1.23 times more volatile than Congress Large Cap. It trades about 0.05 of its total potential returns per unit of risk. Congress Large Cap is currently generating about 0.18 per unit of volatility. If you would invest  4,708  in Congress Large Cap on May 14, 2025 and sell it today you would earn a total of  385.00  from holding Congress Large Cap or generate 8.18% return on investment over 90 days.

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

Vanguard Reit Index  vs.  Congress Large Cap

Vanguard Reit Index

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Reit Index are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Vanguard Reit is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Congress Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Congress Large Cap are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Congress Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vanguard Reit and Congress Large

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

The idea behind Vanguard Reit Index and Congress Large Cap 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.