Correlation Between VanEck Digital and KraneShares
Can any of the company-specific risk be diversified away by investing in both VanEck Digital and KraneShares 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 Digital and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Digital Transformation and KraneShares, you can compare the effects of market volatilities on VanEck Digital and KraneShares 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 Digital with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Digital and KraneShares.
Diversification Opportunities for VanEck Digital and KraneShares
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and KraneShares is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Digital Transformation and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and VanEck Digital 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 Digital Transformation are associated (or correlated) with KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of VanEck Digital i.e., VanEck Digital and KraneShares go up and down completely randomly.
Pair Corralation between VanEck Digital and KraneShares
If you would invest 1,568 in VanEck Digital Transformation on October 20, 2024 and sell it today you would earn a total of 108.00 from holding VanEck Digital Transformation or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
VanEck Digital Transformation vs. KraneShares
Performance |
| Timeline |
| VanEck Digital Trans |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck Digital and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Digital and KraneShares
The main advantage of trading using opposite VanEck Digital and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Digital position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| VanEck Digital vs. Bitwise Crypto Industry | VanEck Digital vs. Global X Blockchain | VanEck Digital vs. First Trust Indxx | VanEck Digital vs. First Trust SkyBridge |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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