Correlation Between Vanguard Total and Pfg Invesco

Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Pfg Invesco 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 Pfg Invesco 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 Pfg Invesco Thematic, you can compare the effects of market volatilities on Vanguard Total and Pfg Invesco 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 Pfg Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Pfg Invesco.

Diversification Opportunities for Vanguard Total and Pfg Invesco

-0.07

Correlation Coefficient

Vanguard Total  Pfg Invesco

Good diversification

The 3 months correlation between Vanguard and Pfg is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and Pfg Invesco Thematic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfg Invesco Thematic 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 Pfg Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfg Invesco Thematic has no effect on the direction of Vanguard Total i.e., Vanguard Total and Pfg Invesco go up and down completely randomly.

Pair Corralation between Vanguard Total and Pfg Invesco

Assuming the 90 days horizon Vanguard Total International is expected to generate 1.22 times more return on investment than Pfg Invesco. However, Vanguard Total is 1.22 times more volatile than Pfg Invesco Thematic. It trades about 0.06 of its potential returns per unit of risk. Pfg Invesco Thematic is currently generating about 0.06 per unit of risk. If you would invest  16,562  in Vanguard Total International on September 13, 2025 and sell it today you would earn a total of  420.00  from holding Vanguard Total International or generate 2.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Vanguard Total International  vs.  Pfg Invesco Thematic

Vanguard Total Inter

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Total International are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vanguard Total is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pfg Invesco Thematic

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pfg Invesco Thematic are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pfg Invesco is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vanguard Total and Pfg Invesco

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

The idea behind Vanguard Total International and Pfg Invesco Thematic 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 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.