Correlation Between VanEck Multi and Multi Units
Can any of the company-specific risk be diversified away by investing in both VanEck Multi and Multi Units 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 Multi and Multi Units into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Multi Asset Growth and Multi Units Luxembourg, you can compare the effects of market volatilities on VanEck Multi and Multi Units 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 Multi with a short position of Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Multi and Multi Units.
Diversification Opportunities for VanEck Multi and Multi Units
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VanEck and Multi is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Multi Asset Growth and Multi Units Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units Luxembourg and VanEck Multi 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 Multi Asset Growth are associated (or correlated) with Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units Luxembourg has no effect on the direction of VanEck Multi i.e., VanEck Multi and Multi Units go up and down completely randomly.
Pair Corralation between VanEck Multi and Multi Units
Assuming the 90 days trading horizon VanEck Multi Asset Growth is expected to generate 0.21 times more return on investment than Multi Units. However, VanEck Multi Asset Growth is 4.87 times less risky than Multi Units. It trades about 0.16 of its potential returns per unit of risk. Multi Units Luxembourg is currently generating about -0.15 per unit of risk. If you would invest 8,181 in VanEck Multi Asset Growth on October 20, 2024 and sell it today you would earn a total of 132.00 from holding VanEck Multi Asset Growth or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Multi Asset Growth vs. Multi Units Luxembourg
Performance |
| Timeline |
| VanEck Multi Asset |
| Multi Units Luxembourg |
VanEck Multi and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Multi and Multi Units
The main advantage of trading using opposite VanEck Multi and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Multi position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.| VanEck Multi vs. VanEck AMX UCITS | VanEck Multi vs. VanEck iBoxx EUR | VanEck Multi vs. VanEck iBoxx EUR | VanEck Multi vs. VanEck AEX UCITS |
| Multi Units vs. LG Russell 2000 | Multi Units vs. VanEck Multi Asset Growth | Multi Units vs. iShares III Public | Multi Units vs. iShares Core MSCI |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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