Correlation Between Amsterdam Commodities and VanEck Polkadot
Can any of the company-specific risk be diversified away by investing in both Amsterdam Commodities and VanEck Polkadot 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 Amsterdam Commodities and VanEck Polkadot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amsterdam Commodities NV and VanEck Polkadot ETN, you can compare the effects of market volatilities on Amsterdam Commodities and VanEck Polkadot 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 Amsterdam Commodities with a short position of VanEck Polkadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amsterdam Commodities and VanEck Polkadot.
Diversification Opportunities for Amsterdam Commodities and VanEck Polkadot
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amsterdam and VanEck is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amsterdam Commodities NV and VanEck Polkadot ETN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Polkadot ETN and Amsterdam Commodities 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 Amsterdam Commodities NV are associated (or correlated) with VanEck Polkadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Polkadot ETN has no effect on the direction of Amsterdam Commodities i.e., Amsterdam Commodities and VanEck Polkadot go up and down completely randomly.
Pair Corralation between Amsterdam Commodities and VanEck Polkadot
Assuming the 90 days trading horizon Amsterdam Commodities NV is expected to under-perform the VanEck Polkadot. But the stock apears to be less risky and, when comparing its historical volatility, Amsterdam Commodities NV is 11.14 times less risky than VanEck Polkadot. The stock trades about -0.04 of its potential returns per unit of risk. The VanEck Polkadot ETN is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 132.00 in VanEck Polkadot ETN on August 31, 2024 and sell it today you would earn a total of 120.00 from holding VanEck Polkadot ETN or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amsterdam Commodities NV vs. VanEck Polkadot ETN
Performance |
| Timeline |
| Amsterdam Commodities |
| VanEck Polkadot ETN |
Amsterdam Commodities and VanEck Polkadot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amsterdam Commodities and VanEck Polkadot
The main advantage of trading using opposite Amsterdam Commodities and VanEck Polkadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amsterdam Commodities position performs unexpectedly, VanEck Polkadot 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 VanEck Polkadot will offset losses from the drop in VanEck Polkadot's long position.| Amsterdam Commodities vs. Flow Traders BV | Amsterdam Commodities vs. Aalberts Industries NV | Amsterdam Commodities vs. ForFarmers NV | Amsterdam Commodities vs. TKH Group NV |
| VanEck Polkadot vs. VanEck Multi Asset Growth | VanEck Polkadot vs. VanEck AMX UCITS | VanEck Polkadot vs. VanEck iBoxx EUR | VanEck Polkadot vs. VanEck iBoxx EUR |
Check out your portfolio center.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |