Correlation Between VanEck Vectors and VanEck ETF
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and VanEck 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 VanEck 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 VanEck ETF Trust, you can compare the effects of market volatilities on VanEck Vectors and VanEck 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 VanEck ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and VanEck ETF.
Diversification Opportunities for VanEck Vectors and VanEck ETF
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between VanEck and VanEck is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and VanEck ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck 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 VanEck ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck ETF Trust has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and VanEck ETF go up and down completely randomly.
Pair Corralation between VanEck Vectors and VanEck ETF
Considering the 90-day investment horizon VanEck Vectors is expected to generate 7.05 times less return on investment than VanEck ETF. But when comparing it to its historical volatility, VanEck Vectors ETF is 2.68 times less risky than VanEck ETF. It trades about 0.11 of its potential returns per unit of risk. VanEck ETF Trust is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,496 in VanEck ETF Trust on September 4, 2024 and sell it today you would earn a total of 229.00 from holding VanEck ETF Trust or generate 6.55% 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. VanEck ETF Trust
Performance |
| Timeline |
| VanEck Vectors ETF |
| VanEck ETF Trust |
VanEck Vectors and VanEck ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and VanEck ETF
The main advantage of trading using opposite VanEck Vectors and VanEck ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, VanEck 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 VanEck ETF will offset losses from the drop in VanEck 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 |
| VanEck ETF vs. Sonida Senior Living | VanEck ETF vs. The9 Ltd ADR | VanEck ETF vs. VanEck Vectors ETF | VanEck ETF vs. Nine Energy Service |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |