Correlation Between VanEck India and GLCN
Can any of the company-specific risk be diversified away by investing in both VanEck India and GLCN 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 India and GLCN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck India Growth and GLCN, you can compare the effects of market volatilities on VanEck India and GLCN 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 India with a short position of GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck India and GLCN.
Diversification Opportunities for VanEck India and GLCN
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VanEck and GLCN is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding VanEck India Growth and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN and VanEck India 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 India Growth are associated (or correlated) with GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of VanEck India i.e., VanEck India and GLCN go up and down completely randomly.
Pair Corralation between VanEck India and GLCN
If you would invest 5,169 in VanEck India Growth on September 4, 2024 and sell it today you would earn a total of 11.00 from holding VanEck India Growth or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
VanEck India Growth vs. GLCN
Performance |
| Timeline |
| VanEck India Growth |
| GLCN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck India and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck India and GLCN
The main advantage of trading using opposite VanEck India and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck India position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN's long position.| VanEck India vs. Franklin FTSE India | VanEck India vs. First Trust India | VanEck India vs. Columbia India Consumer |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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