Correlation Between VanEck Green and Elkhorn
Can any of the company-specific risk be diversified away by investing in both VanEck Green and Elkhorn 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 Green and Elkhorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Green Bond and Elkhorn, you can compare the effects of market volatilities on VanEck Green and Elkhorn 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 Green with a short position of Elkhorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Green and Elkhorn.
Diversification Opportunities for VanEck Green and Elkhorn
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and Elkhorn is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Green Bond and Elkhorn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkhorn and VanEck Green 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 Green Bond are associated (or correlated) with Elkhorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkhorn has no effect on the direction of VanEck Green i.e., VanEck Green and Elkhorn go up and down completely randomly.
Pair Corralation between VanEck Green and Elkhorn
If you would invest 2,394 in VanEck Green Bond on August 28, 2024 and sell it today you would earn a total of 8.00 from holding VanEck Green Bond or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
VanEck Green Bond vs. Elkhorn
Performance |
| Timeline |
| VanEck Green Bond |
| Elkhorn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck Green and Elkhorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Green and Elkhorn
The main advantage of trading using opposite VanEck Green and Elkhorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Green position performs unexpectedly, Elkhorn 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 Elkhorn will offset losses from the drop in Elkhorn's long position.| VanEck Green vs. iShares USD Green | VanEck Green vs. First Trust California | VanEck Green vs. Great Southern Bancorp | VanEck Green vs. VanEck China Bond |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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