Correlation Between VanEck Vectors and SHP ETF
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and SHP 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 VanEck Vectors and SHP ETF 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 SHP ETF Trust, you can compare the effects of market volatilities on VanEck Vectors and SHP 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 VanEck Vectors with a short position of SHP ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and SHP ETF.
Diversification Opportunities for VanEck Vectors and SHP ETF
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and SHP is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and SHP ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHP ETF 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 SHP ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHP ETF Trust has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and SHP ETF go up and down completely randomly.
Pair Corralation between VanEck Vectors and SHP ETF
Considering the 90-day investment horizon VanEck Vectors ETF is expected to generate 12.05 times more return on investment than SHP ETF. However, VanEck Vectors is 12.05 times more volatile than SHP ETF Trust. It trades about 0.09 of its potential returns per unit of risk. SHP ETF Trust is currently generating about 0.7 per unit of risk. If you would invest 4,614 in VanEck Vectors ETF on August 25, 2024 and sell it today you would earn a total of 35.00 from holding VanEck Vectors ETF or generate 0.76% 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. SHP ETF Trust
Performance |
| Timeline |
| VanEck Vectors ETF |
| SHP ETF Trust |
VanEck Vectors and SHP ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and SHP ETF
The main advantage of trading using opposite VanEck Vectors and SHP ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, SHP 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 SHP ETF will offset losses from the drop in SHP ETF'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 |
| SHP ETF vs. First Trust Low | SHP ETF vs. First Trust Senior | SHP ETF vs. First Trust TCW | SHP ETF 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |