Correlation Between VanEck BDC and ProShares
Can any of the company-specific risk be diversified away by investing in both VanEck BDC and ProShares 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 VanEck BDC and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck BDC Income and ProShares DJ Brookfield, you can compare the effects of market volatilities on VanEck BDC and ProShares 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 VanEck BDC with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck BDC and ProShares.
Diversification Opportunities for VanEck BDC and ProShares
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between VanEck and ProShares is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding VanEck BDC Income and ProShares DJ Brookfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares DJ Brookfield and VanEck BDC 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 VanEck BDC Income are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares DJ Brookfield has no effect on the direction of VanEck BDC i.e., VanEck BDC and ProShares go up and down completely randomly.
Pair Corralation between VanEck BDC and ProShares
Given the investment horizon of 90 days VanEck BDC Income is expected to generate 1.06 times more return on investment than ProShares. However, VanEck BDC is 1.06 times more volatile than ProShares DJ Brookfield. It trades about 0.09 of its potential returns per unit of risk. ProShares DJ Brookfield is currently generating about 0.04 per unit of risk. If you would invest 1,233 in VanEck BDC Income on November 2, 2024 and sell it today you would earn a total of 505.00 from holding VanEck BDC Income or generate 40.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
VanEck BDC Income vs. ProShares DJ Brookfield
Performance |
| Timeline |
| VanEck BDC Income |
| ProShares DJ Brookfield |
VanEck BDC and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck BDC and ProShares
The main advantage of trading using opposite VanEck BDC and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck BDC position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| VanEck BDC vs. Virtus InfraCap Preferred | VanEck BDC vs. VanEck Mortgage REIT | VanEck BDC vs. XAI Octagon Floating | VanEck BDC vs. Amplify High Income |
| ProShares vs. FlexShares STOXX Global | ProShares vs. SPDR SP Global | ProShares vs. iShares Infrastructure ETF | ProShares vs. iShares Global Infrastructure |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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