Correlation Between Vanguard Developed and Blackrock International

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

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

Diversification Opportunities for Vanguard Developed and Blackrock International

-0.68

Correlation Coefficient

Vanguard Developed  Blackrock International

Excellent diversification

The 3 months correlation between Vanguard and Blackrock is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Developed Markets and Blackrock International Divide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock International and Vanguard Developed 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 Developed Markets are associated (or correlated) with Blackrock International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock International has no effect on the direction of Vanguard Developed i.e., Vanguard Developed and Blackrock International go up and down completely randomly.

Pair Corralation between Vanguard Developed and Blackrock International

If you would invest  1,539  in Vanguard Developed Markets on December 23, 2024 and sell it today you would earn a total of  134.00  from holding Vanguard Developed Markets or generate 8.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	34.43%
Values	Daily Returns

Vanguard Developed Markets  vs.  Blackrock International Divide

Vanguard Developed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Developed Markets are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Vanguard Developed may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Blackrock International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock International Dividend has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Blackrock 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 Vanguard Developed and Blackrock International

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

The idea behind Vanguard Developed Markets and Blackrock International Dividend 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.