Correlation Between VanEck Digital and SPDR FTSE
Can any of the company-specific risk be diversified away by investing in both VanEck Digital and SPDR 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 Digital and SPDR FTSE 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 SPDR FTSE International, you can compare the effects of market volatilities on VanEck Digital and SPDR 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 Digital with a short position of SPDR FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Digital and SPDR FTSE.
Diversification Opportunities for VanEck Digital and SPDR FTSE
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and SPDR is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Digital Transformation and SPDR FTSE International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR FTSE International 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 SPDR FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR FTSE International has no effect on the direction of VanEck Digital i.e., VanEck Digital and SPDR FTSE go up and down completely randomly.
Pair Corralation between VanEck Digital and SPDR FTSE
Given the investment horizon of 90 days VanEck Digital Transformation is expected to generate 6.98 times more return on investment than SPDR FTSE. However, VanEck Digital is 6.98 times more volatile than SPDR FTSE International. It trades about 0.1 of its potential returns per unit of risk. SPDR FTSE International is currently generating about 0.0 per unit of risk. If you would invest 314.00 in VanEck Digital Transformation on September 3, 2024 and sell it today you would earn a total of 1,566 from holding VanEck Digital Transformation or generate 498.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Digital Transformation vs. SPDR FTSE International
Performance |
| Timeline |
| VanEck Digital Trans |
| SPDR FTSE International |
VanEck Digital and SPDR FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Digital and SPDR FTSE
The main advantage of trading using opposite VanEck Digital and SPDR FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Digital position performs unexpectedly, SPDR 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 SPDR FTSE will offset losses from the drop in SPDR FTSE's 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 |
| SPDR FTSE vs. SPDR Bloomberg Emerging | SPDR FTSE vs. Vanguard Emerging Markets | SPDR FTSE vs. SPDR Bloomberg Barclays | SPDR FTSE vs. VanEck JP Morgan |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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