Vanguard World Correlations
| VDE Etf | MXN 2,265 13.00 0.58% |
The correlation of Vanguard World is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vanguard World moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vanguard World moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard World. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Vanguard |
The ability to find closely correlated positions to Vanguard World could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vanguard World when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vanguard World - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vanguard World to buy it.
Moving against Vanguard Etf
| 0.9 | EMLC | VanEck Vectors ETF | PairCorr |
| 0.83 | BNDX | Vanguard Charlotte Funds | PairCorr |
| 0.83 | TLT | iShares Trust | PairCorr |
| 0.71 | EDV | Vanguard World | PairCorr |
| 0.68 | BND | Vanguard Bond Index | PairCorr |
| 0.52 | TIP | iShares Trust | PairCorr |
| 0.46 | QQQ | Invesco QQQ Trust | PairCorr |
Related Correlations Analysis
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Vanguard World Competition Risk-Adjusted Indicators
There is a big difference between Vanguard Etf performing well and Vanguard World ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Vanguard World's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.91 | 0.18 | 0.08 | 0.20 | 2.33 | 3.27 | 30.88 | |||
| MSFT | 1.04 | (0.04) | (0.03) | 0.03 | 1.21 | 2.22 | 5.87 | |||
| UBER | 1.62 | (0.01) | 0.02 | 0.06 | 1.69 | 2.64 | 18.39 | |||
| F | 1.59 | (0.02) | 0.04 | 0.06 | 1.92 | 4.88 | 10.80 | |||
| T | 0.87 | (0.08) | 0.00 | (0.16) | 0.00 | 1.88 | 4.89 | |||
| A | 1.22 | 0.01 | 0.03 | 0.08 | 1.29 | 2.29 | 6.31 | |||
| CRM | 1.20 | (0.13) | 0.00 | (0.02) | 0.00 | 2.64 | 10.84 | |||
| JPM | 0.76 | 0.06 | 0.05 | 0.12 | 1.27 | 1.94 | 8.65 | |||
| MRK | 0.68 | 0.04 | 0.02 | 0.12 | 0.63 | 1.35 | 6.92 | |||
| XOM | 0.79 | 0.17 | 0.12 | 0.50 | 0.77 | 1.77 | 5.64 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Vanguard World without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Already Invested in Vanguard World?
The danger of trading Vanguard World is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Vanguard World is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Vanguard World. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Vanguard World is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard World. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Note that the Vanguard World information on this page should be used as a complementary analysis to other Vanguard World's statistical models used 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.