Correlation Between Vanguard Growth and Ardelyx

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

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

Diversification Opportunities for Vanguard Growth and Ardelyx

-0.25

Correlation Coefficient

Vanguard Growth  Ardelyx

Very good diversification

The 3 months correlation between Vanguard and Ardelyx is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index and Ardelyx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardelyx and Vanguard Growth 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 Growth Index are associated (or correlated) with Ardelyx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardelyx has no effect on the direction of Vanguard Growth i.e., Vanguard Growth and Ardelyx go up and down completely randomly.

Pair Corralation between Vanguard Growth and Ardelyx

Assuming the 90 days horizon Vanguard Growth Index is expected to generate 0.27 times more return on investment than Ardelyx. However, Vanguard Growth Index is 3.77 times less risky than Ardelyx. It trades about 0.08 of its potential returns per unit of risk. Ardelyx is currently generating about -0.03 per unit of risk. If you would invest  24,249  in Vanguard Growth Index on September 12, 2025 and sell it today you would earn a total of  1,173  from holding Vanguard Growth Index or generate 4.84% return on investment over 90 days.

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

Vanguard Growth Index  vs.  Ardelyx

Vanguard Growth Index

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Growth Index are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vanguard Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ardelyx

Risk-Adjusted Performance

Weakest

Over the last 90 days Ardelyx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Vanguard Growth and Ardelyx

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

The idea behind Vanguard Growth Index and Ardelyx 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.