Correlation Between Intel and VanEck ETF
Can any of the company-specific risk be diversified away by investing in both Intel and VanEck ETF 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 Intel and VanEck ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and VanEck ETF Trust, you can compare the effects of market volatilities on Intel and VanEck ETF 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 Intel with a short position of VanEck ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and VanEck ETF.
Diversification Opportunities for Intel and VanEck ETF
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intel and VanEck is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Intel and VanEck ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck ETF Trust and Intel 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 Intel are associated (or correlated) with VanEck ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck ETF Trust has no effect on the direction of Intel i.e., Intel and VanEck ETF go up and down completely randomly.
Pair Corralation between Intel and VanEck ETF
Given the investment horizon of 90 days Intel is expected to generate 9.42 times more return on investment than VanEck ETF. However, Intel is 9.42 times more volatile than VanEck ETF Trust. It trades about 0.14 of its potential returns per unit of risk. VanEck ETF Trust is currently generating about -0.28 per unit of risk. If you would invest 2,029 in Intel on November 28, 2024 and sell it today you would earn a total of 270.00 from holding Intel or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. VanEck ETF Trust
Performance |
| Timeline |
| Intel |
| VanEck ETF Trust |
Intel and VanEck ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and VanEck ETF
The main advantage of trading using opposite Intel and VanEck ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, VanEck ETF 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 ETF will offset losses from the drop in VanEck ETF's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| VanEck ETF vs. VanEck Morningstar International | VanEck ETF vs. VanEck Vectors ETF | VanEck ETF vs. BlackRock Carbon Transition | VanEck ETF vs. VanEck Morningstar Wide |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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