Correlation Between NYSE Composite and VanEck Vietnam
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and VanEck Vietnam 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 NYSE Composite and VanEck Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and VanEck Vietnam ETF, you can compare the effects of market volatilities on NYSE Composite and VanEck Vietnam 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 NYSE Composite with a short position of VanEck Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and VanEck Vietnam.
Diversification Opportunities for NYSE Composite and VanEck Vietnam
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and VanEck is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and VanEck Vietnam ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vietnam ETF and NYSE Composite 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 NYSE Composite are associated (or correlated) with VanEck Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vietnam ETF has no effect on the direction of NYSE Composite i.e., NYSE Composite and VanEck Vietnam go up and down completely randomly.
Pair Corralation between NYSE Composite and VanEck Vietnam
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.54 times more return on investment than VanEck Vietnam. However, NYSE Composite is 1.85 times less risky than VanEck Vietnam. It trades about 0.07 of its potential returns per unit of risk. VanEck Vietnam ETF is currently generating about 0.0 per unit of risk. If you would invest 1,547,479 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 449,351 from holding NYSE Composite or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. VanEck Vietnam ETF
Performance |
| Timeline |
NYSE Composite and VanEck Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
VanEck Vietnam ETF
Pair trading matchups for VanEck Vietnam
Pair Trading with NYSE Composite and VanEck Vietnam
The main advantage of trading using opposite NYSE Composite and VanEck Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, VanEck Vietnam 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 Vietnam will offset losses from the drop in VanEck Vietnam's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| VanEck Vietnam vs. iShares MSCI Malaysia | VanEck Vietnam vs. iShares MSCI Hong | VanEck Vietnam vs. HUMANA INC | VanEck Vietnam vs. SCOR PK |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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