Correlation Between VanEck Vectors and Virtus ETF
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and Virtus 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 VanEck Vectors and Virtus ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors Moodys and Virtus ETF Trust, you can compare the effects of market volatilities on VanEck Vectors and Virtus 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 VanEck Vectors with a short position of Virtus ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and Virtus ETF.
Diversification Opportunities for VanEck Vectors and Virtus ETF
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VanEck and Virtus is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Moodys and Virtus ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus ETF Trust and VanEck Vectors 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 Vectors Moodys are associated (or correlated) with Virtus ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus ETF Trust has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and Virtus ETF go up and down completely randomly.
Pair Corralation between VanEck Vectors and Virtus ETF
Given the investment horizon of 90 days VanEck Vectors is expected to generate 1.69 times less return on investment than Virtus ETF. But when comparing it to its historical volatility, VanEck Vectors Moodys is 1.36 times less risky than Virtus ETF. It trades about 0.02 of its potential returns per unit of risk. Virtus ETF Trust is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,478 in Virtus ETF Trust on January 11, 2025 and sell it today you would earn a total of 65.00 from holding Virtus ETF Trust or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors Moodys vs. Virtus ETF Trust
Performance |
| Timeline |
| VanEck Vectors Moodys |
| Virtus ETF Trust |
VanEck Vectors and Virtus ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and Virtus ETF
The main advantage of trading using opposite VanEck Vectors and Virtus ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, Virtus 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 Virtus ETF will offset losses from the drop in Virtus ETF's long position.| VanEck Vectors vs. iShares iBonds 2026 | VanEck Vectors vs. iShares BBB Rated | VanEck Vectors vs. iShares iBonds Dec | VanEck Vectors vs. iShares 25 Year |
| Virtus ETF vs. T Rowe Price | Virtus ETF vs. Angel Oak UltraShort | Virtus ETF vs. T Rowe Price | Virtus ETF vs. Ab Tax Aware Short |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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