| HEJD Etf | | | 26.52 0.09 0.34% |
The current 90-days correlation between VictoryShares Hedged and Core Alternative ETF is -0.02 (i.e., Good diversification). The correlation of VictoryShares Hedged 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
VictoryShares Hedged Correlation With Market
Poor diversification
The correlation between VictoryShares Hedged Equity and DJI is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding VictoryShares Hedged Equity and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in VictoryShares Hedged Equity. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in inflation.
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 |
VictoryShares Hedged Constituents Risk-Adjusted IndicatorsThere is a big difference between VictoryShares Etf performing well and VictoryShares Hedged 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 VictoryShares Hedged'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.