Correlation Between Vaneck Emerging and Cm Modity
Can any of the company-specific risk be diversified away by investing in both Vaneck Emerging and Cm Modity 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 Emerging and Cm Modity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaneck Emerging Markets and Cm Modity Index, you can compare the effects of market volatilities on Vaneck Emerging and Cm Modity 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 Emerging with a short position of Cm Modity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaneck Emerging and Cm Modity.
Diversification Opportunities for Vaneck Emerging and Cm Modity
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vaneck and CMCAX is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vaneck Emerging Markets and Cm Modity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cm Modity Index and Vaneck Emerging 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 Emerging Markets are associated (or correlated) with Cm Modity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cm Modity Index has no effect on the direction of Vaneck Emerging i.e., Vaneck Emerging and Cm Modity go up and down completely randomly.
Pair Corralation between Vaneck Emerging and Cm Modity
Assuming the 90 days horizon Vaneck Emerging Markets is expected to under-perform the Cm Modity. In addition to that, Vaneck Emerging is 1.24 times more volatile than Cm Modity Index. It trades about -0.03 of its total potential returns per unit of risk. Cm Modity Index is currently generating about -0.02 per unit of volatility. If you would invest 6,875 in Cm Modity Index on September 3, 2024 and sell it today you would lose (157.00) from holding Cm Modity Index or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaneck Emerging Markets vs. Cm Modity Index
Performance |
| Timeline |
| Vaneck Emerging Markets |
| Cm Modity Index |
Vaneck Emerging and Cm Modity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaneck Emerging and Cm Modity
The main advantage of trading using opposite Vaneck Emerging and Cm Modity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaneck Emerging position performs unexpectedly, Cm Modity 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 Cm Modity will offset losses from the drop in Cm Modity's long position.| Vaneck Emerging vs. Ab Small Cap | Vaneck Emerging vs. Nasdaq 100 Fund Class | Vaneck Emerging vs. Growth Strategy Fund | Vaneck Emerging vs. Rbb Fund |
| Cm Modity vs. Global Hard Assets | Cm Modity vs. Pimco Moditiesplus Strategy | Cm Modity vs. Aqr Risk Balanced Modities | Cm Modity vs. Parametric Modity Strategy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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