Correlation Between Vanguard International and Feature Integration

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

By analyzing existing cross correlation between Vanguard International Semiconductor and Feature Integration Technology, you can compare the effects of market volatilities on Vanguard International and Feature Integration 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 International with a short position of Feature Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard International and Feature Integration.

Diversification Opportunities for Vanguard International and Feature Integration

-0.12

Correlation Coefficient

Vanguard International  Feature Integration

Good diversification

The 3 months correlation between Vanguard and Feature is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard International Semicon and Feature Integration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feature Integration and Vanguard International 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 International Semiconductor are associated (or correlated) with Feature Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feature Integration has no effect on the direction of Vanguard International i.e., Vanguard International and Feature Integration go up and down completely randomly.

Pair Corralation between Vanguard International and Feature Integration

Assuming the 90 days trading horizon Vanguard International is expected to generate 1.12 times less return on investment than Feature Integration. In addition to that, Vanguard International is 1.36 times more volatile than Feature Integration Technology. It trades about 0.06 of its total potential returns per unit of risk. Feature Integration Technology is currently generating about 0.09 per unit of volatility. If you would invest  7,160  in Feature Integration Technology on December 4, 2024 and sell it today you would earn a total of  570.00  from holding Feature Integration Technology or generate 7.96% return on investment over 90 days.

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

Vanguard International Semicon  vs.  Feature Integration Technology

Vanguard International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard International Semiconductor are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Vanguard International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Feature Integration

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Feature Integration Technology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Feature Integration may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Vanguard International and Feature Integration

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

The idea behind Vanguard International Semiconductor and Feature Integration 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.