Correlation Between Cboe UK and VanEck Hydrogen
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By analyzing existing cross correlation between Cboe UK Consumer and VanEck Hydrogen Economy, you can compare the effects of market volatilities on Cboe UK and VanEck Hydrogen 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 Cboe UK with a short position of VanEck Hydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and VanEck Hydrogen.
Diversification Opportunities for Cboe UK and VanEck Hydrogen
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cboe and VanEck is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and VanEck Hydrogen Economy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Hydrogen Economy and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with VanEck Hydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Hydrogen Economy has no effect on the direction of Cboe UK i.e., Cboe UK and VanEck Hydrogen go up and down completely randomly.
Pair Corralation between Cboe UK and VanEck Hydrogen
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.04 times less return on investment than VanEck Hydrogen. But when comparing it to its historical volatility, Cboe UK Consumer is 3.18 times less risky than VanEck Hydrogen. It trades about 0.42 of its potential returns per unit of risk. VanEck Hydrogen Economy is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 552.00 in VanEck Hydrogen Economy on August 31, 2024 and sell it today you would earn a total of 48.00 from holding VanEck Hydrogen Economy or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. VanEck Hydrogen Economy
Performance |
| Timeline |
Cboe UK and VanEck Hydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
VanEck Hydrogen Economy
Pair trading matchups for VanEck Hydrogen
Pair Trading with Cboe UK and VanEck Hydrogen
The main advantage of trading using opposite Cboe UK and VanEck Hydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, VanEck Hydrogen 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 Hydrogen will offset losses from the drop in VanEck Hydrogen's long position.| Cboe UK vs. Lendinvest PLC | Cboe UK vs. Monster Beverage Corp | Cboe UK vs. Cembra Money Bank | Cboe UK vs. UNIQA Insurance Group |
| VanEck Hydrogen vs. Vanguard FTSE Developed | VanEck Hydrogen vs. Leverage Shares 2x | VanEck Hydrogen vs. Amundi Index Solutions | VanEck Hydrogen vs. Amundi Index Solutions |
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 Positions Ratings module to 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.
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