Correlation Between VanEck Vectors and Listed Funds
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and Listed Funds 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 Vectors and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors ETF and Listed Funds Trust, you can compare the effects of market volatilities on VanEck Vectors and Listed Funds 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 Vectors with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and Listed Funds.
Diversification Opportunities for VanEck Vectors and Listed Funds
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and Listed is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and VanEck Vectors 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 Vectors ETF are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and Listed Funds go up and down completely randomly.
Pair Corralation between VanEck Vectors and Listed Funds
Considering the 90-day investment horizon VanEck Vectors ETF is expected to generate 3.43 times more return on investment than Listed Funds. However, VanEck Vectors is 3.43 times more volatile than Listed Funds Trust. It trades about 0.11 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.15 per unit of risk. If you would invest 4,625 in VanEck Vectors ETF on August 28, 2024 and sell it today you would earn a total of 40.00 from holding VanEck Vectors ETF or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors ETF vs. Listed Funds Trust
Performance |
| Timeline |
| VanEck Vectors ETF |
| Listed Funds Trust |
VanEck Vectors and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and Listed Funds
The main advantage of trading using opposite VanEck Vectors and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.| VanEck Vectors vs. Franklin Liberty Intermediate | VanEck Vectors vs. Hartford Municipal Opportunities | VanEck Vectors vs. IQ MacKay Municipal |
| Listed Funds vs. First Trust Low | Listed Funds vs. First Trust Senior | Listed Funds vs. First Trust TCW | Listed Funds vs. First Trust Tactical |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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