Correlation Between Strategy Shares and VanEck ETF
Can any of the company-specific risk be diversified away by investing in both Strategy Shares and VanEck ETF 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 Strategy Shares and VanEck ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategy Shares and VanEck ETF Trust, you can compare the effects of market volatilities on Strategy Shares and VanEck ETF 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 Strategy Shares with a short position of VanEck ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategy Shares and VanEck ETF.
Diversification Opportunities for Strategy Shares and VanEck ETF
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strategy and VanEck is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Strategy Shares and VanEck ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck ETF Trust and Strategy Shares 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 Strategy Shares are associated (or correlated) with VanEck ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck ETF Trust has no effect on the direction of Strategy Shares i.e., Strategy Shares and VanEck ETF go up and down completely randomly.
Pair Corralation between Strategy Shares and VanEck ETF
If you would invest 4,294 in VanEck ETF Trust on September 2, 2024 and sell it today you would earn a total of 197.00 from holding VanEck ETF Trust or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Strategy Shares vs. VanEck ETF Trust
Performance |
| Timeline |
| Strategy Shares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VanEck ETF Trust |
Strategy Shares and VanEck ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategy Shares and VanEck ETF
The main advantage of trading using opposite Strategy Shares and VanEck ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategy Shares position performs unexpectedly, VanEck ETF 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 ETF will offset losses from the drop in VanEck ETF's long position.| Strategy Shares vs. Vanguard Growth Index | Strategy Shares vs. iShares Russell 1000 | Strategy Shares vs. iShares SP 500 | Strategy Shares vs. iShares Core SP |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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