Correlation Between VanEck Vectors and Horace Mann
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and Horace Mann 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 Horace Mann 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 Horace Mann Educators, you can compare the effects of market volatilities on VanEck Vectors and Horace Mann 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 Horace Mann. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and Horace Mann.
Diversification Opportunities for VanEck Vectors and Horace Mann
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VanEck and Horace is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Moodys and Horace Mann Educators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horace Mann Educators 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 Horace Mann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horace Mann Educators has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and Horace Mann go up and down completely randomly.
Pair Corralation between VanEck Vectors and Horace Mann
Considering the 90-day investment horizon VanEck Vectors is expected to generate 15.23 times less return on investment than Horace Mann. But when comparing it to its historical volatility, VanEck Vectors Moodys is 7.17 times less risky than Horace Mann. It trades about 0.09 of its potential returns per unit of risk. Horace Mann Educators is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,740 in Horace Mann Educators on August 29, 2024 and sell it today you would earn a total of 402.00 from holding Horace Mann Educators or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors Moodys vs. Horace Mann Educators
Performance |
| Timeline |
| VanEck Vectors Moodys |
| Horace Mann Educators |
VanEck Vectors and Horace Mann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and Horace Mann
The main advantage of trading using opposite VanEck Vectors and Horace Mann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, Horace Mann 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 Horace Mann will offset losses from the drop in Horace Mann's long position.| VanEck Vectors vs. Senstar Technologies | VanEck Vectors vs. ImmuCell | VanEck Vectors vs. Anika Therapeutics | VanEck Vectors vs. Aquagold International |
| Horace Mann vs. Kemper | Horace Mann vs. RLI Corp | Horace Mann vs. Global Indemnity PLC | Horace Mann vs. Argo Group International |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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