Correlation Between VanEck Inflation and Cabana Target
Can any of the company-specific risk be diversified away by investing in both VanEck Inflation and Cabana Target 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 Inflation and Cabana Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Inflation Allocation and Cabana Target Leading, you can compare the effects of market volatilities on VanEck Inflation and Cabana Target 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 Inflation with a short position of Cabana Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Inflation and Cabana Target.
Diversification Opportunities for VanEck Inflation and Cabana Target
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VanEck and Cabana is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Inflation Allocation and Cabana Target Leading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabana Target Leading and VanEck Inflation 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 Inflation Allocation are associated (or correlated) with Cabana Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabana Target Leading has no effect on the direction of VanEck Inflation i.e., VanEck Inflation and Cabana Target go up and down completely randomly.
Pair Corralation between VanEck Inflation and Cabana Target
Given the investment horizon of 90 days VanEck Inflation is expected to generate 1.17 times less return on investment than Cabana Target. But when comparing it to its historical volatility, VanEck Inflation Allocation is 1.09 times less risky than Cabana Target. It trades about 0.13 of its potential returns per unit of risk. Cabana Target Leading is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,128 in Cabana Target Leading on August 30, 2024 and sell it today you would earn a total of 49.00 from holding Cabana Target Leading or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Inflation Allocation vs. Cabana Target Leading
Performance |
| Timeline |
| VanEck Inflation All |
| Cabana Target Leading |
VanEck Inflation and Cabana Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Inflation and Cabana Target
The main advantage of trading using opposite VanEck Inflation and Cabana Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Inflation position performs unexpectedly, Cabana Target 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 Cabana Target will offset losses from the drop in Cabana Target's long position.| VanEck Inflation vs. EA Series Trust | VanEck Inflation vs. ProShares VIX Mid Term | VanEck Inflation vs. ProShares VIX Short Term | VanEck Inflation vs. LHA Market State |
| Cabana Target vs. iShares Core Growth | Cabana Target vs. Alpha Architect Gdsdn | Cabana Target vs. STF Tactical Growth | Cabana Target vs. VanEck Inflation Allocation |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |