Correlation Between VanEck Vectors and EA Series
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on VanEck Vectors and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and EA Series.
Diversification Opportunities for VanEck Vectors and EA Series
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between VanEck and STXM is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and EA Series go up and down completely randomly.
Pair Corralation between VanEck Vectors and EA Series
Considering the 90-day investment horizon VanEck Vectors is expected to generate 363.37 times less return on investment than EA Series. But when comparing it to its historical volatility, VanEck Vectors ETF is 278.19 times less risky than EA Series. It trades about 0.06 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.00 in EA Series Trust on September 12, 2024 and sell it today you would earn a total of 2,749 from holding EA Series Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.58% |
| Values | Daily Returns |
VanEck Vectors ETF vs. EA Series Trust
Performance |
| Timeline |
| VanEck Vectors ETF |
| EA Series Trust |
VanEck Vectors and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and EA Series
The main advantage of trading using opposite VanEck Vectors and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' 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 |
| EA Series vs. Vanguard Momentum Factor | EA Series vs. Vanguard Multifactor | EA Series vs. Vanguard Value Factor | EA Series vs. Vanguard Minimum Volatility |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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