Correlation Between VanEck Multi and VanEck Multi
Can any of the company-specific risk be diversified away by investing in both VanEck Multi and VanEck Multi 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 Multi and VanEck Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Multi Asset Balanced and VanEck Multi Asset Growth, you can compare the effects of market volatilities on VanEck Multi and VanEck Multi 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 Multi with a short position of VanEck Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Multi and VanEck Multi.
Diversification Opportunities for VanEck Multi and VanEck Multi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VanEck and VanEck is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Multi Asset Balanced and VanEck Multi Asset Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Multi Asset and VanEck Multi 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 Multi Asset Balanced are associated (or correlated) with VanEck Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Multi Asset has no effect on the direction of VanEck Multi i.e., VanEck Multi and VanEck Multi go up and down completely randomly.
Pair Corralation between VanEck Multi and VanEck Multi
Assuming the 90 days trading horizon VanEck Multi is expected to generate 1.18 times less return on investment than VanEck Multi. But when comparing it to its historical volatility, VanEck Multi Asset Balanced is 1.17 times less risky than VanEck Multi. It trades about 0.14 of its potential returns per unit of risk. VanEck Multi Asset Growth is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7,193 in VanEck Multi Asset Growth on September 4, 2024 and sell it today you would earn a total of 1,197 from holding VanEck Multi Asset Growth or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Multi Asset Balanced vs. VanEck Multi Asset Growth
Performance |
| Timeline |
| VanEck Multi Asset |
| VanEck Multi Asset |
VanEck Multi and VanEck Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Multi and VanEck Multi
The main advantage of trading using opposite VanEck Multi and VanEck Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Multi position performs unexpectedly, VanEck Multi 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 Multi will offset losses from the drop in VanEck Multi's long position.| VanEck Multi vs. VanEck Multi Asset Growth | VanEck Multi vs. VanEck AMX UCITS | VanEck Multi vs. VanEck iBoxx EUR | VanEck Multi vs. VanEck iBoxx EUR |
| VanEck Multi vs. HSBC MSCI Japan | VanEck Multi vs. iShares II Public | VanEck Multi vs. Hydratec Industries NV | VanEck Multi vs. VanEck Polkadot ETN |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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