Correlation Between Vanguard Growth and CDT Environmental

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

By analyzing existing cross correlation between Vanguard Growth And and CDT Environmental Technology, you can compare the effects of market volatilities on Vanguard Growth and CDT Environmental 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 CDT Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Growth and CDT Environmental.

Diversification Opportunities for Vanguard Growth and CDT Environmental

0.19

Correlation Coefficient

Vanguard Growth  CDT Environmental

Average diversification

The 3 months correlation between Vanguard and CDT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth And and CDT Environmental Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDT Environmental 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 And are associated (or correlated) with CDT Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDT Environmental has no effect on the direction of Vanguard Growth i.e., Vanguard Growth and CDT Environmental go up and down completely randomly.

Pair Corralation between Vanguard Growth and CDT Environmental

Assuming the 90 days horizon Vanguard Growth is expected to generate 3.67 times less return on investment than CDT Environmental. But when comparing it to its historical volatility, Vanguard Growth And is 17.77 times less risky than CDT Environmental. It trades about 0.13 of its potential returns per unit of risk. CDT Environmental Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  75.00  in CDT Environmental Technology on July 19, 2025 and sell it today you would lose (9.00) from holding CDT Environmental Technology or give up 12.0% of portfolio value over 90 days.

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

Vanguard Growth And  vs.  CDT Environmental Technology

Vanguard Growth And

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Growth And are ranked lower than 10 (%) 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.

CDT Environmental

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CDT Environmental Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CDT Environmental reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vanguard Growth and CDT Environmental

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

The idea behind Vanguard Growth And and CDT Environmental Technology 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 Global Correlations module to find global opportunities by holding instruments from different markets.