Correlation Between VanEck Vectors and IShares GSCI
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and IShares GSCI 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 IShares GSCI 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 iShares GSCI Commodity, you can compare the effects of market volatilities on VanEck Vectors and IShares GSCI 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 IShares GSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and IShares GSCI.
Diversification Opportunities for VanEck Vectors and IShares GSCI
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and IShares is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and iShares GSCI Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares GSCI Commodity 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 IShares GSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares GSCI Commodity has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and IShares GSCI go up and down completely randomly.
Pair Corralation between VanEck Vectors and IShares GSCI
Considering the 90-day investment horizon VanEck Vectors is expected to generate 3.37 times less return on investment than IShares GSCI. But when comparing it to its historical volatility, VanEck Vectors ETF is 3.43 times less risky than IShares GSCI. It trades about 0.04 of its potential returns per unit of risk. iShares GSCI Commodity is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,382 in iShares GSCI Commodity on November 9, 2024 and sell it today you would earn a total of 225.00 from holding iShares GSCI Commodity or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.51% |
| Values | Daily Returns |
VanEck Vectors ETF vs. iShares GSCI Commodity
Performance |
| Timeline |
| VanEck Vectors ETF |
| iShares GSCI Commodity |
VanEck Vectors and IShares GSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and IShares GSCI
The main advantage of trading using opposite VanEck Vectors and IShares GSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, IShares GSCI 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 IShares GSCI will offset losses from the drop in IShares GSCI's long position.| VanEck Vectors vs. Formidable Fortress ETF | VanEck Vectors vs. Sonida Senior Living | VanEck Vectors vs. China Yuchai International | VanEck Vectors vs. Nine Energy Service |
| IShares GSCI vs. Invesco Optimum Yield | IShares GSCI vs. First Trust Global | IShares GSCI vs. iShares ESG Aware | IShares GSCI vs. iShares Fallen Angels |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |