Correlation Between VanEck Preferred and ETFis Series
Can any of the company-specific risk be diversified away by investing in both VanEck Preferred and ETFis Series 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 Preferred and ETFis Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Preferred Securities and ETFis Series Trust, you can compare the effects of market volatilities on VanEck Preferred and ETFis Series 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 Preferred with a short position of ETFis Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Preferred and ETFis Series.
Diversification Opportunities for VanEck Preferred and ETFis Series
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VanEck and ETFis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Preferred Securities and ETFis Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFis Series Trust and VanEck Preferred 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 Preferred Securities are associated (or correlated) with ETFis Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFis Series Trust has no effect on the direction of VanEck Preferred i.e., VanEck Preferred and ETFis Series go up and down completely randomly.
Pair Corralation between VanEck Preferred and ETFis Series
Given the investment horizon of 90 days VanEck Preferred Securities is expected to generate 1.11 times more return on investment than ETFis Series. However, VanEck Preferred is 1.11 times more volatile than ETFis Series Trust. It trades about 0.07 of its potential returns per unit of risk. ETFis Series Trust is currently generating about -0.08 per unit of risk. If you would invest 1,786 in VanEck Preferred Securities on September 1, 2024 and sell it today you would earn a total of 15.00 from holding VanEck Preferred Securities or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Preferred Securities vs. ETFis Series Trust
Performance |
| Timeline |
| VanEck Preferred Sec |
| ETFis Series Trust |
VanEck Preferred and ETFis Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Preferred and ETFis Series
The main advantage of trading using opposite VanEck Preferred and ETFis Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Preferred position performs unexpectedly, ETFis Series 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 ETFis Series will offset losses from the drop in ETFis Series' long position.| VanEck Preferred vs. Global X SuperIncome | VanEck Preferred vs. SPDR ICE Preferred | VanEck Preferred vs. Invesco Preferred ETF | VanEck Preferred vs. Invesco Variable Rate |
| ETFis Series vs. VanEck Preferred Securities | ETFis Series vs. Invesco Preferred ETF | ETFis Series vs. Global X SuperIncome | ETFis Series vs. Invesco Variable Rate |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |