Correlation Between Global X and VanEck BDC
Can any of the company-specific risk be diversified away by investing in both Global X and VanEck BDC 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 Global X and VanEck BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SuperDividend and VanEck BDC Income, you can compare the effects of market volatilities on Global X and VanEck BDC 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 Global X with a short position of VanEck BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and VanEck BDC.
Diversification Opportunities for Global X and VanEck BDC
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and VanEck is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Global X SuperDividend and VanEck BDC Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck BDC Income and Global X 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 Global X SuperDividend are associated (or correlated) with VanEck BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck BDC Income has no effect on the direction of Global X i.e., Global X and VanEck BDC go up and down completely randomly.
Pair Corralation between Global X and VanEck BDC
Given the investment horizon of 90 days Global X SuperDividend is expected to under-perform the VanEck BDC. But the etf apears to be less risky and, when comparing its historical volatility, Global X SuperDividend is 1.02 times less risky than VanEck BDC. The etf trades about 0.0 of its potential returns per unit of risk. The VanEck BDC Income is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,656 in VanEck BDC Income on August 28, 2024 and sell it today you would earn a total of 18.00 from holding VanEck BDC Income or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X SuperDividend vs. VanEck BDC Income
Performance |
| Timeline |
| Global X SuperDividend |
| VanEck BDC Income |
Global X and VanEck BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and VanEck BDC
The main advantage of trading using opposite Global X and VanEck BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, VanEck BDC 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 BDC will offset losses from the drop in VanEck BDC's long position.The idea behind Global X SuperDividend and VanEck BDC Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| VanEck BDC vs. Virtus InfraCap Preferred | VanEck BDC vs. VanEck Mortgage REIT | VanEck BDC vs. XAI Octagon Floating | VanEck BDC vs. Amplify High Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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