Correlation Between VanEck ChiNext and Listed Funds
Can any of the company-specific risk be diversified away by investing in both VanEck ChiNext and Listed Funds 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 ChiNext and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck ChiNext ETF and Listed Funds Trust, you can compare the effects of market volatilities on VanEck ChiNext and Listed Funds 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 ChiNext with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ChiNext and Listed Funds.
Diversification Opportunities for VanEck ChiNext and Listed Funds
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VanEck and Listed is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ChiNext ETF and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and VanEck ChiNext 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 ChiNext ETF are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of VanEck ChiNext i.e., VanEck ChiNext and Listed Funds go up and down completely randomly.
Pair Corralation between VanEck ChiNext and Listed Funds
Given the investment horizon of 90 days VanEck ChiNext is expected to generate 1.26 times less return on investment than Listed Funds. In addition to that, VanEck ChiNext is 6.59 times more volatile than Listed Funds Trust. It trades about 0.04 of its total potential returns per unit of risk. Listed Funds Trust is currently generating about 0.37 per unit of volatility. If you would invest 3,273 in Listed Funds Trust on September 1, 2024 and sell it today you would earn a total of 145.00 from holding Listed Funds Trust or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
VanEck ChiNext ETF vs. Listed Funds Trust
Performance |
| Timeline |
| VanEck ChiNext ETF |
| Listed Funds Trust |
VanEck ChiNext and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck ChiNext and Listed Funds
The main advantage of trading using opposite VanEck ChiNext and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ChiNext position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.| VanEck ChiNext vs. FT Vest Equity | VanEck ChiNext vs. Northern Lights | VanEck ChiNext vs. Dimensional International High | VanEck ChiNext vs. Matthews China Discovery |
| Listed Funds vs. Pacer Global Cash | Listed Funds vs. SmartETFs Dividend Builder | Listed Funds vs. FT Cboe Vest | Listed Funds vs. Franklin International Low |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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