Correlation Between VanEck ETF and VanEck Vectors
Can any of the company-specific risk be diversified away by investing in both VanEck ETF and VanEck Vectors 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 ETF and VanEck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck ETF Trust and VanEck Vectors ETF, you can compare the effects of market volatilities on VanEck ETF and VanEck Vectors 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 ETF with a short position of VanEck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ETF and VanEck Vectors.
Diversification Opportunities for VanEck ETF and VanEck Vectors
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and VanEck is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and VanEck Vectors ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors ETF and VanEck ETF 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 ETF Trust are associated (or correlated) with VanEck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors ETF has no effect on the direction of VanEck ETF i.e., VanEck ETF and VanEck Vectors go up and down completely randomly.
Pair Corralation between VanEck ETF and VanEck Vectors
Given the investment horizon of 90 days VanEck ETF is expected to generate 2.12 times less return on investment than VanEck Vectors. In addition to that, VanEck ETF is 1.09 times more volatile than VanEck Vectors ETF. It trades about 0.21 of its total potential returns per unit of risk. VanEck Vectors ETF is currently generating about 0.48 per unit of volatility. If you would invest 3,609 in VanEck Vectors ETF on November 3, 2024 and sell it today you would earn a total of 247.00 from holding VanEck Vectors ETF or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
VanEck ETF Trust vs. VanEck Vectors ETF
Performance |
| Timeline |
| VanEck ETF Trust |
| VanEck Vectors ETF |
VanEck ETF and VanEck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck ETF and VanEck Vectors
The main advantage of trading using opposite VanEck ETF and VanEck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ETF position performs unexpectedly, VanEck Vectors 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 Vectors will offset losses from the drop in VanEck Vectors' long position.| VanEck ETF vs. VanEck Morningstar International | VanEck ETF vs. VanEck Vectors ETF | VanEck ETF vs. BlackRock Carbon Transition | VanEck ETF vs. VanEck Morningstar Wide |
| VanEck Vectors vs. VanEck Morningstar International | VanEck Vectors vs. VanEck ETF Trust | VanEck Vectors vs. VanEck ETF Trust | VanEck Vectors vs. iShares Morningstar Mid Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |