Correlation Between VanEck Vectors and ISharesGlobal 100
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and ISharesGlobal 100 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 ISharesGlobal 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors Australian and iSharesGlobal 100, you can compare the effects of market volatilities on VanEck Vectors and ISharesGlobal 100 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 ISharesGlobal 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and ISharesGlobal 100.
Diversification Opportunities for VanEck Vectors and ISharesGlobal 100
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and ISharesGlobal is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Australian and iSharesGlobal 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSharesGlobal 100 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 Australian are associated (or correlated) with ISharesGlobal 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSharesGlobal 100 has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and ISharesGlobal 100 go up and down completely randomly.
Pair Corralation between VanEck Vectors and ISharesGlobal 100
Assuming the 90 days trading horizon VanEck Vectors Australian is expected to under-perform the ISharesGlobal 100. In addition to that, VanEck Vectors is 1.82 times more volatile than iSharesGlobal 100. It trades about -0.15 of its total potential returns per unit of risk. iSharesGlobal 100 is currently generating about 0.65 per unit of volatility. If you would invest 15,097 in iSharesGlobal 100 on September 20, 2024 and sell it today you would earn a total of 1,139 from holding iSharesGlobal 100 or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
VanEck Vectors Australian vs. iSharesGlobal 100
Performance |
| Timeline |
| VanEck Vectors Australian |
| iSharesGlobal 100 |
VanEck Vectors and ISharesGlobal 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and ISharesGlobal 100
The main advantage of trading using opposite VanEck Vectors and ISharesGlobal 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, ISharesGlobal 100 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 ISharesGlobal 100 will offset losses from the drop in ISharesGlobal 100's long position.| VanEck Vectors vs. iSharesGlobal 100 | VanEck Vectors vs. iShares Core SP | VanEck Vectors vs. SPDR SP 500 | VanEck Vectors vs. Vanguard Total Market |
| ISharesGlobal 100 vs. BetaShares Geared Equity | ISharesGlobal 100 vs. VanEck Vectors Australian | ISharesGlobal 100 vs. Vanguard Total Market | ISharesGlobal 100 vs. VanEck Morningstar Wide |
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 Correlations module to find global opportunities by holding instruments from different markets.
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