Correlation Between Vanguard 500 and XIAOMI
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By analyzing existing cross correlation between Vanguard 500 Index and XIAOMI 3375 29 APR 30, you can compare the effects of market volatilities on Vanguard 500 and XIAOMI 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 500 with a short position of XIAOMI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard 500 and XIAOMI.
Diversification Opportunities for Vanguard 500 and XIAOMI
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and XIAOMI is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard 500 Index and XIAOMI 3375 29 APR 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XIAOMI 3375 29 and Vanguard 500 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 500 Index are associated (or correlated) with XIAOMI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XIAOMI 3375 29 has no effect on the direction of Vanguard 500 i.e., Vanguard 500 and XIAOMI go up and down completely randomly.
Pair Corralation between Vanguard 500 and XIAOMI
Assuming the 90 days horizon Vanguard 500 Index is expected to under-perform the XIAOMI. In addition to that, Vanguard 500 is 2.22 times more volatile than XIAOMI 3375 29 APR 30. It trades about -0.18 of its total potential returns per unit of risk. XIAOMI 3375 29 APR 30 is currently generating about -0.35 per unit of volatility. If you would invest 9,181 in XIAOMI 3375 29 APR 30 on October 6, 2024 and sell it today you would lose (39.00) from holding XIAOMI 3375 29 APR 30 or give up 0.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 15.0% |
Values | Daily Returns |
Vanguard 500 Index vs. XIAOMI 3375 29 APR 30
Performance |
Timeline |
Vanguard 500 Index |
XIAOMI 3375 29 |
Vanguard 500 and XIAOMI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vanguard 500 and XIAOMI
The main advantage of trading using opposite Vanguard 500 and XIAOMI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard 500 position performs unexpectedly, XIAOMI 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 XIAOMI will offset losses from the drop in XIAOMI's long position.Vanguard 500 vs. Vanguard Total Stock | Vanguard 500 vs. Vanguard Mid Cap Index | Vanguard 500 vs. Vanguard Small Cap Index | Vanguard 500 vs. Vanguard Total Bond |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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