Correlation Between Vanguard Money and Valic Company

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

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

Diversification Opportunities for Vanguard Money and Valic Company

0.29

Correlation Coefficient

Vanguard Money  Valic Company

Modest diversification

The 3 months correlation between Vanguard and Valic is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Money Market and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I and Vanguard Money 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 Money Market are associated (or correlated) with Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Vanguard Money i.e., Vanguard Money and Valic Company go up and down completely randomly.

Pair Corralation between Vanguard Money and Valic Company

If you would invest  1,081  in Valic Company I on May 4, 2025 and sell it today you would earn a total of  94.00  from holding Valic Company I or generate 8.7% return on investment over 90 days.

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

Vanguard Money Market  vs.  Valic Company I

Vanguard Money Market

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vanguard Money Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Vanguard Money is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Valic Company I

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Valic Company may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vanguard Money and Valic Company

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

The idea behind Vanguard Money Market and Valic Company I 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.