Correlation Between VanEck AMX and SPDR Dow
Can any of the company-specific risk be diversified away by investing in both VanEck AMX and SPDR Dow 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 AMX and SPDR Dow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck AMX UCITS and SPDR Dow Jones, you can compare the effects of market volatilities on VanEck AMX and SPDR Dow 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 AMX with a short position of SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck AMX and SPDR Dow.
Diversification Opportunities for VanEck AMX and SPDR Dow
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and SPDR is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding VanEck AMX UCITS and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones and VanEck AMX 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 AMX UCITS are associated (or correlated) with SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of VanEck AMX i.e., VanEck AMX and SPDR Dow go up and down completely randomly.
Pair Corralation between VanEck AMX and SPDR Dow
Assuming the 90 days trading horizon VanEck AMX is expected to generate 1.36 times less return on investment than SPDR Dow. In addition to that, VanEck AMX is 1.28 times more volatile than SPDR Dow Jones. It trades about 0.08 of its total potential returns per unit of risk. SPDR Dow Jones is currently generating about 0.13 per unit of volatility. If you would invest 41,600 in SPDR Dow Jones on September 13, 2024 and sell it today you would earn a total of 675.00 from holding SPDR Dow Jones or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
VanEck AMX UCITS vs. SPDR Dow Jones
Performance |
| Timeline |
| VanEck AMX UCITS |
| SPDR Dow Jones |
VanEck AMX and SPDR Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck AMX and SPDR Dow
The main advantage of trading using opposite VanEck AMX and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck AMX position performs unexpectedly, SPDR Dow 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 SPDR Dow will offset losses from the drop in SPDR Dow's long position.| VanEck AMX vs. VanEck AEX UCITS | VanEck AMX vs. VanEck Sustainable World | VanEck AMX vs. VanEck Global Real | VanEck AMX vs. iShares AEX UCITS |
| SPDR Dow vs. SPDR MSCI World | SPDR Dow vs. SPDR SP Dividend | SPDR Dow vs. SPDR SP 500 | SPDR Dow vs. SPDR BB SB |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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