Correlation Between Kurv Technology and Vanguard Information

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

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

Diversification Opportunities for Kurv Technology and Vanguard Information

0.99

Correlation Coefficient

Kurv Technology  Vanguard Information

No risk reduction

The 3 months correlation between Kurv and Vanguard is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Kurv Technology Titans and Vanguard Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Information and Kurv Technology 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 Kurv Technology Titans are associated (or correlated) with Vanguard Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Information has no effect on the direction of Kurv Technology i.e., Kurv Technology and Vanguard Information go up and down completely randomly.

Pair Corralation between Kurv Technology and Vanguard Information

Given the investment horizon of 90 days Kurv Technology Titans is expected to under-perform the Vanguard Information. But the etf apears to be less risky and, when comparing its historical volatility, Kurv Technology Titans is 1.08 times less risky than Vanguard Information. The etf trades about -0.12 of its potential returns per unit of risk. The Vanguard Information Technology is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  64,557  in Vanguard Information Technology on December 25, 2024 and sell it today you would lose (7,018) from holding Vanguard Information Technology or give up 10.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Kurv Technology Titans  vs.  Vanguard Information Technolog

Kurv Technology Titans

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kurv Technology Titans has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Etf's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

Vanguard Information

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vanguard Information Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Kurv Technology and Vanguard Information

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

The idea behind Kurv Technology Titans and Vanguard Information 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.