Correlation Between VanEck CMCI and WBI BullBear
Can any of the company-specific risk be diversified away by investing in both VanEck CMCI and WBI BullBear 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 CMCI and WBI BullBear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck CMCI Commodity and WBI BullBear Value, you can compare the effects of market volatilities on VanEck CMCI and WBI BullBear 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 CMCI with a short position of WBI BullBear. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck CMCI and WBI BullBear.
Diversification Opportunities for VanEck CMCI and WBI BullBear
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and WBI is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding VanEck CMCI Commodity and WBI BullBear Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WBI BullBear Value and VanEck CMCI 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 CMCI Commodity are associated (or correlated) with WBI BullBear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WBI BullBear Value has no effect on the direction of VanEck CMCI i.e., VanEck CMCI and WBI BullBear go up and down completely randomly.
Pair Corralation between VanEck CMCI and WBI BullBear
Given the investment horizon of 90 days VanEck CMCI Commodity is expected to under-perform the WBI BullBear. In addition to that, VanEck CMCI is 3.92 times more volatile than WBI BullBear Value. It trades about -0.08 of its total potential returns per unit of risk. WBI BullBear Value is currently generating about 0.45 per unit of volatility. If you would invest 2,840 in WBI BullBear Value on November 1, 2024 and sell it today you would earn a total of 147.00 from holding WBI BullBear Value or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
VanEck CMCI Commodity vs. WBI BullBear Value
Performance |
| Timeline |
| VanEck CMCI Commodity |
| WBI BullBear Value |
VanEck CMCI and WBI BullBear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck CMCI and WBI BullBear
The main advantage of trading using opposite VanEck CMCI and WBI BullBear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck CMCI position performs unexpectedly, WBI BullBear 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 WBI BullBear will offset losses from the drop in WBI BullBear's long position.| VanEck CMCI vs. Freedom Day Dividend | VanEck CMCI vs. Franklin Templeton ETF | VanEck CMCI vs. iShares MSCI China | VanEck CMCI vs. Tidal Trust II |
| WBI BullBear vs. FT Vest Equity | WBI BullBear vs. Northern Lights | WBI BullBear vs. Dimensional International High | WBI BullBear vs. First Trust Exchange Traded |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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