Correlation Between VanEck Intermediate and Avantis Core
Can any of the company-specific risk be diversified away by investing in both VanEck Intermediate and Avantis Core 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 Intermediate and Avantis Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Intermediate Muni and Avantis Core Municipal, you can compare the effects of market volatilities on VanEck Intermediate and Avantis Core 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 Intermediate with a short position of Avantis Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Intermediate and Avantis Core.
Diversification Opportunities for VanEck Intermediate and Avantis Core
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and Avantis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Intermediate Muni and Avantis Core Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis Core Municipal and VanEck Intermediate 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 Intermediate Muni are associated (or correlated) with Avantis Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis Core Municipal has no effect on the direction of VanEck Intermediate i.e., VanEck Intermediate and Avantis Core go up and down completely randomly.
Pair Corralation between VanEck Intermediate and Avantis Core
Considering the 90-day investment horizon VanEck Intermediate is expected to generate 3.19 times less return on investment than Avantis Core. In addition to that, VanEck Intermediate is 1.05 times more volatile than Avantis Core Municipal. It trades about 0.02 of its total potential returns per unit of risk. Avantis Core Municipal is currently generating about 0.08 per unit of volatility. If you would invest 4,627 in Avantis Core Municipal on August 31, 2024 and sell it today you would earn a total of 57.00 from holding Avantis Core Municipal or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Intermediate Muni vs. Avantis Core Municipal
Performance |
| Timeline |
| VanEck Intermediate Muni |
| Avantis Core Municipal |
VanEck Intermediate and Avantis Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Intermediate and Avantis Core
The main advantage of trading using opposite VanEck Intermediate and Avantis Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Intermediate position performs unexpectedly, Avantis Core 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 Avantis Core will offset losses from the drop in Avantis Core's long position.| VanEck Intermediate vs. VanEck Long Muni | VanEck Intermediate vs. VanEck Short Muni | VanEck Intermediate vs. SPDR Nuveen Bloomberg | VanEck Intermediate vs. Invesco National AMT Free |
| Avantis Core vs. Avantis Core Fixed | Avantis Core vs. American Century ETF | Avantis Core vs. American Century Diversified | Avantis Core vs. IQ MacKay Municipal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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