Correlation Between Vulcan Value and Vanguard Intermediate

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

By analyzing existing cross correlation between Vulcan Value Partners and Vanguard Intermediate Term Corporate, you can compare the effects of market volatilities on Vulcan Value and Vanguard Intermediate 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 Vulcan Value with a short position of Vanguard Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Value and Vanguard Intermediate.

Diversification Opportunities for Vulcan Value and Vanguard Intermediate

0.72

Correlation Coefficient

Vulcan Value  Vanguard Intermediate

Poor diversification

The 3 months correlation between Vulcan and Vanguard is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Value Partners and Vanguard Intermediate Term Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Intermediate and Vulcan Value 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 Vulcan Value Partners are associated (or correlated) with Vanguard Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Intermediate has no effect on the direction of Vulcan Value i.e., Vulcan Value and Vanguard Intermediate go up and down completely randomly.

Pair Corralation between Vulcan Value and Vanguard Intermediate

Assuming the 90 days horizon Vulcan Value Partners is expected to generate 3.41 times more return on investment than Vanguard Intermediate. However, Vulcan Value is 3.41 times more volatile than Vanguard Intermediate Term Corporate. It trades about 0.21 of its potential returns per unit of risk. Vanguard Intermediate Term Corporate is currently generating about 0.12 per unit of risk. If you would invest  2,654  in Vulcan Value Partners on April 29, 2025 and sell it today you would earn a total of  341.00  from holding Vulcan Value Partners or generate 12.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Vulcan Value Partners  vs.  Vanguard Intermediate Term Cor

Vulcan Value Partners

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Value Partners are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Vulcan Value may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vanguard Intermediate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Intermediate Term Corporate are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Vanguard Intermediate is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Vulcan Value and Vanguard Intermediate

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

The idea behind Vulcan Value Partners and Vanguard Intermediate Term Corporate 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.