Correlation Between VanEck ChiNext and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both VanEck ChiNext and Franklin FTSE 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 Franklin FTSE 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 Franklin FTSE South, you can compare the effects of market volatilities on VanEck ChiNext and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ChiNext and Franklin FTSE.
Diversification Opportunities for VanEck ChiNext and Franklin FTSE
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and Franklin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ChiNext ETF and Franklin FTSE South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE South 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 Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE South has no effect on the direction of VanEck ChiNext i.e., VanEck ChiNext and Franklin FTSE go up and down completely randomly.
Pair Corralation between VanEck ChiNext and Franklin FTSE
Given the investment horizon of 90 days VanEck ChiNext ETF is expected to generate 1.86 times more return on investment than Franklin FTSE. However, VanEck ChiNext is 1.86 times more volatile than Franklin FTSE South. It trades about 0.01 of its potential returns per unit of risk. Franklin FTSE South is currently generating about 0.01 per unit of risk. If you would invest 3,010 in VanEck ChiNext ETF on September 12, 2024 and sell it today you would lose (40.00) from holding VanEck ChiNext ETF or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
VanEck ChiNext ETF vs. Franklin FTSE South
Performance |
| Timeline |
| VanEck ChiNext ETF |
| Franklin FTSE South |
VanEck ChiNext and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck ChiNext and Franklin FTSE
The main advantage of trading using opposite VanEck ChiNext and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ChiNext position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE's long position.| VanEck ChiNext vs. FT Vest Equity | VanEck ChiNext vs. Northern Lights | VanEck ChiNext vs. Dimensional International High | VanEck ChiNext vs. JPMorgan Fundamental Data |
| Franklin FTSE vs. iShares MSCI Qatar | Franklin FTSE vs. iShares MSCI Israel | Franklin FTSE vs. iShares MSCI Philippines |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |