Correlation Between Vanguard Funds and PEPKOR

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

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

Diversification Opportunities for Vanguard Funds and PEPKOR

0.69

Correlation Coefficient

Vanguard Funds  PEPKOR

Poor diversification

The 3 months correlation between Vanguard and PEPKOR is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Funds Public and PEPKOR LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPKOR LTD and Vanguard Funds 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 Funds Public are associated (or correlated) with PEPKOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPKOR LTD has no effect on the direction of Vanguard Funds i.e., Vanguard Funds and PEPKOR go up and down completely randomly.

Pair Corralation between Vanguard Funds and PEPKOR

Assuming the 90 days trading horizon Vanguard Funds Public is expected to generate 0.62 times more return on investment than PEPKOR. However, Vanguard Funds Public is 1.61 times less risky than PEPKOR. It trades about 0.19 of its potential returns per unit of risk. PEPKOR LTD is currently generating about 0.04 per unit of risk. If you would invest  9,087  in Vanguard Funds Public on April 24, 2025 and sell it today you would earn a total of  1,183  from holding Vanguard Funds Public or generate 13.02% return on investment over 90 days.

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

Vanguard Funds Public  vs.  PEPKOR LTD

Vanguard Funds Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Funds Public are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Vanguard Funds may actually be approaching a critical reversion point that can send shares even higher in August 2025.

PEPKOR LTD

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PEPKOR LTD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, PEPKOR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Vanguard Funds and PEPKOR

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

The idea behind Vanguard Funds Public and PEPKOR LTD 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.