Correlation Between ISharesGlobal 100 and VanEck Global
Can any of the company-specific risk be diversified away by investing in both ISharesGlobal 100 and VanEck Global 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 ISharesGlobal 100 and VanEck Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSharesGlobal 100 and VanEck Global Listed, you can compare the effects of market volatilities on ISharesGlobal 100 and VanEck Global 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 ISharesGlobal 100 with a short position of VanEck Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISharesGlobal 100 and VanEck Global.
Diversification Opportunities for ISharesGlobal 100 and VanEck Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ISharesGlobal and VanEck is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iSharesGlobal 100 and VanEck Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Global Listed and ISharesGlobal 100 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 iSharesGlobal 100 are associated (or correlated) with VanEck Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Global Listed has no effect on the direction of ISharesGlobal 100 i.e., ISharesGlobal 100 and VanEck Global go up and down completely randomly.
Pair Corralation between ISharesGlobal 100 and VanEck Global
Assuming the 90 days trading horizon iSharesGlobal 100 is expected to generate 0.78 times more return on investment than VanEck Global. However, iSharesGlobal 100 is 1.28 times less risky than VanEck Global. It trades about 0.2 of its potential returns per unit of risk. VanEck Global Listed is currently generating about 0.14 per unit of risk. If you would invest 14,900 in iSharesGlobal 100 on September 22, 2024 and sell it today you would earn a total of 1,035 from holding iSharesGlobal 100 or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSharesGlobal 100 vs. VanEck Global Listed
Performance |
| Timeline |
| iSharesGlobal 100 |
| VanEck Global Listed |
ISharesGlobal 100 and VanEck Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISharesGlobal 100 and VanEck Global
The main advantage of trading using opposite ISharesGlobal 100 and VanEck Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISharesGlobal 100 position performs unexpectedly, VanEck Global 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 Global will offset losses from the drop in VanEck Global's long position.| ISharesGlobal 100 vs. VanEck Global Listed | ISharesGlobal 100 vs. BetaShares Crypto Innovators | ISharesGlobal 100 vs. BetaShares Global Government | ISharesGlobal 100 vs. BetaShares Geared Australian |
| VanEck Global vs. Betashares Asia Technology | VanEck Global vs. CD Private Equity | VanEck Global vs. BetaShares Australia 200 | VanEck Global vs. Australian High Interest |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |