Correlation Between VanEck International and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both VanEck International and SPDR Bloomberg 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 International and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck International High and SPDR Bloomberg Short, you can compare the effects of market volatilities on VanEck International and SPDR Bloomberg 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 International with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck International and SPDR Bloomberg.
Diversification Opportunities for VanEck International and SPDR Bloomberg
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and SPDR is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding VanEck International High and SPDR Bloomberg Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Short and VanEck International 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 International High are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Short has no effect on the direction of VanEck International i.e., VanEck International and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between VanEck International and SPDR Bloomberg
Considering the 90-day investment horizon VanEck International High is expected to generate 0.83 times more return on investment than SPDR Bloomberg. However, VanEck International High is 1.21 times less risky than SPDR Bloomberg. It trades about 0.09 of its potential returns per unit of risk. SPDR Bloomberg Short is currently generating about -0.01 per unit of risk. If you would invest 1,917 in VanEck International High on August 27, 2024 and sell it today you would earn a total of 154.00 from holding VanEck International High or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck International High vs. SPDR Bloomberg Short
Performance |
| Timeline |
| VanEck International High |
| SPDR Bloomberg Short |
VanEck International and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck International and SPDR Bloomberg
The main advantage of trading using opposite VanEck International and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck International position performs unexpectedly, SPDR Bloomberg 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 Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| VanEck International vs. VanEck Emerging Markets | VanEck International vs. iShares International High | VanEck International vs. iShares Intl High | VanEck International vs. iShares JP Morgan |
| SPDR Bloomberg vs. SPDR Bloomberg International | SPDR Bloomberg vs. VanEck Green Bond | SPDR Bloomberg vs. iShares 1 3 Year |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |