Correlation Between Vanguard Growth and KCE Electronics

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

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

Diversification Opportunities for Vanguard Growth and KCE Electronics

0.12

Correlation Coefficient

Vanguard Growth  KCE Electronics

Average diversification

The 3 months correlation between Vanguard and KCE is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index and KCE Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCE Electronics Public and Vanguard Growth 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 Growth Index are associated (or correlated) with KCE Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCE Electronics Public has no effect on the direction of Vanguard Growth i.e., Vanguard Growth and KCE Electronics go up and down completely randomly.

Pair Corralation between Vanguard Growth and KCE Electronics

Assuming the 90 days horizon Vanguard Growth Index is expected to generate 1.4 times more return on investment than KCE Electronics. However, Vanguard Growth is 1.4 times more volatile than KCE Electronics Public. It trades about 0.11 of its potential returns per unit of risk. KCE Electronics Public is currently generating about -0.12 per unit of risk. If you would invest  19,069  in Vanguard Growth Index on March 28, 2025 and sell it today you would earn a total of  2,978  from holding Vanguard Growth Index or generate 15.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Vanguard Growth Index  vs.  KCE Electronics Public

Vanguard Growth Index

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Growth Index are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vanguard Growth showed solid returns over the last few months and may actually be approaching a breakup point.

KCE Electronics Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days KCE Electronics Public has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Vanguard Growth and KCE Electronics

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

The idea behind Vanguard Growth Index and KCE Electronics Public 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.