Correlation Between Vanguard Total and Cm Commodity
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Cm Commodity 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 Total and Cm Commodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total International and Cm Modity Index, you can compare the effects of market volatilities on Vanguard Total and Cm Commodity 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 Total with a short position of Cm Commodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Cm Commodity.
Diversification Opportunities for Vanguard Total and Cm Commodity
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and COMIX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and Cm Modity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cm Modity Index and Vanguard Total 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 Total International are associated (or correlated) with Cm Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cm Modity Index has no effect on the direction of Vanguard Total i.e., Vanguard Total and Cm Commodity go up and down completely randomly.
Pair Corralation between Vanguard Total and Cm Commodity
Assuming the 90 days horizon Vanguard Total International is expected to generate 0.88 times more return on investment than Cm Commodity. However, Vanguard Total International is 1.14 times less risky than Cm Commodity. It trades about 0.31 of its potential returns per unit of risk. Cm Modity Index is currently generating about 0.09 per unit of risk. If you would invest 3,398 in Vanguard Total International on April 26, 2025 and sell it today you would earn a total of 415.00 from holding Vanguard Total International or generate 12.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Vanguard Total International vs. Cm Modity Index
Performance |
Timeline |
Vanguard Total Inter |
Cm Modity Index |
Vanguard Total and Cm Commodity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vanguard Total and Cm Commodity
The main advantage of trading using opposite Vanguard Total and Cm Commodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Cm Commodity 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 Cm Commodity will offset losses from the drop in Cm Commodity's long position.Vanguard Total vs. Vanguard Total Bond | Vanguard Total vs. Vanguard Total Stock | Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Small Cap Index |
Cm Commodity vs. High Yield Fund | Cm Commodity vs. Fidelity Capital Income | Cm Commodity vs. Lord Abbett Short | Cm Commodity vs. Payden High Income |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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