Correlation Between VanEck Crypto and IShares Treasury
Can any of the company-specific risk be diversified away by investing in both VanEck Crypto and IShares Treasury 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 Crypto and IShares Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Crypto Blockchain and iShares Treasury Bond, you can compare the effects of market volatilities on VanEck Crypto and IShares Treasury 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 Crypto with a short position of IShares Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Crypto and IShares Treasury.
Diversification Opportunities for VanEck Crypto and IShares Treasury
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and IShares is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Crypto Blockchain and iShares Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Treasury Bond and VanEck Crypto 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 Crypto Blockchain are associated (or correlated) with IShares Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Treasury Bond has no effect on the direction of VanEck Crypto i.e., VanEck Crypto and IShares Treasury go up and down completely randomly.
Pair Corralation between VanEck Crypto and IShares Treasury
Assuming the 90 days trading horizon VanEck Crypto Blockchain is expected to generate 6.54 times more return on investment than IShares Treasury. However, VanEck Crypto is 6.54 times more volatile than iShares Treasury Bond. It trades about 0.33 of its potential returns per unit of risk. iShares Treasury Bond is currently generating about 0.09 per unit of risk. If you would invest 925.00 in VanEck Crypto Blockchain on September 1, 2024 and sell it today you would earn a total of 399.00 from holding VanEck Crypto Blockchain or generate 43.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
VanEck Crypto Blockchain vs. iShares Treasury Bond
Performance |
| Timeline |
| VanEck Crypto Blockchain |
| iShares Treasury Bond |
VanEck Crypto and IShares Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Crypto and IShares Treasury
The main advantage of trading using opposite VanEck Crypto and IShares Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Crypto position performs unexpectedly, IShares Treasury 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 IShares Treasury will offset losses from the drop in IShares Treasury's long position.| VanEck Crypto vs. Vanguard FTSE Developed | VanEck Crypto vs. Leverage Shares 2x | VanEck Crypto vs. Amundi Index Solutions | VanEck Crypto vs. Amundi Index Solutions |
| IShares Treasury vs. iShares MSCI Japan | IShares Treasury vs. iShares JP Morgan | IShares Treasury vs. iShares MSCI Europe | IShares Treasury vs. iShares Nasdaq Biotechnology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |