Correlation Between VanEck Hydrogen and VanEck Crypto
Can any of the company-specific risk be diversified away by investing in both VanEck Hydrogen and VanEck Crypto 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 Hydrogen and VanEck Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Hydrogen Economy and VanEck Crypto Blockchain, you can compare the effects of market volatilities on VanEck Hydrogen and VanEck Crypto 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 Hydrogen with a short position of VanEck Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Hydrogen and VanEck Crypto.
Diversification Opportunities for VanEck Hydrogen and VanEck Crypto
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VanEck and VanEck is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Hydrogen Economy and VanEck Crypto Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Crypto Blockchain and VanEck Hydrogen 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 Hydrogen Economy are associated (or correlated) with VanEck Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Crypto Blockchain has no effect on the direction of VanEck Hydrogen i.e., VanEck Hydrogen and VanEck Crypto go up and down completely randomly.
Pair Corralation between VanEck Hydrogen and VanEck Crypto
Assuming the 90 days trading horizon VanEck Hydrogen Economy is expected to under-perform the VanEck Crypto. But the etf apears to be less risky and, when comparing its historical volatility, VanEck Hydrogen Economy is 2.44 times less risky than VanEck Crypto. The etf trades about -0.05 of its potential returns per unit of risk. The VanEck Crypto Blockchain is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 229.00 in VanEck Crypto Blockchain on August 27, 2024 and sell it today you would earn a total of 1,002 from holding VanEck Crypto Blockchain or generate 437.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
VanEck Hydrogen Economy vs. VanEck Crypto Blockchain
Performance |
| Timeline |
| VanEck Hydrogen Economy |
| VanEck Crypto Blockchain |
VanEck Hydrogen and VanEck Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Hydrogen and VanEck Crypto
The main advantage of trading using opposite VanEck Hydrogen and VanEck Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Hydrogen position performs unexpectedly, VanEck Crypto 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 VanEck Crypto will offset losses from the drop in VanEck Crypto's long position.| VanEck Hydrogen vs. VanEck Crypto Blockchain | VanEck Hydrogen vs. VanEck Morningstar SMID | VanEck Hydrogen vs. VanEck Semiconductor UCITS | VanEck Hydrogen vs. VanEck Circular Economy |
| VanEck Crypto vs. VanEck Morningstar SMID | VanEck Crypto vs. VanEck Hydrogen Economy | VanEck Crypto vs. VanEck Semiconductor UCITS | VanEck Crypto vs. VanEck Circular Economy |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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