Correlation Between SPACE and Vanguard International

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

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

Diversification Opportunities for SPACE and Vanguard International

-0.65

Correlation Coefficient

SPACE  Vanguard International

Excellent diversification

The 3 months correlation between SPACE and Vanguard is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and Vanguard International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard International and SPACE 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 SPACE are associated (or correlated) with Vanguard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard International has no effect on the direction of SPACE i.e., SPACE and Vanguard International go up and down completely randomly.

Pair Corralation between SPACE and Vanguard International

Assuming the 90 days horizon SPACE is expected to under-perform the Vanguard International. In addition to that, SPACE is 4.9 times more volatile than Vanguard International Growth. It trades about -0.11 of its total potential returns per unit of risk. Vanguard International Growth is currently generating about 0.05 per unit of volatility. If you would invest  3,235  in Vanguard International Growth on December 27, 2024 and sell it today you would earn a total of  107.00  from holding Vanguard International Growth or generate 3.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

SPACE  vs.  Vanguard International Growth

SPACE

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPACE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for SPACE shareholders.

Vanguard International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard International Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Vanguard International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SPACE and Vanguard International

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

The idea behind SPACE and Vanguard International Growth 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.