Correlation Between VanEck Multi and VanEck Polkadot
Can any of the company-specific risk be diversified away by investing in both VanEck Multi and VanEck Polkadot 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 VanEck Polkadot 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 VanEck Polkadot ETN, you can compare the effects of market volatilities on VanEck Multi and VanEck Polkadot 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 VanEck Polkadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Multi and VanEck Polkadot.
Diversification Opportunities for VanEck Multi and VanEck Polkadot
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and VanEck is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Multi Asset Growth and VanEck Polkadot ETN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Polkadot ETN 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 VanEck Polkadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Polkadot ETN has no effect on the direction of VanEck Multi i.e., VanEck Multi and VanEck Polkadot go up and down completely randomly.
Pair Corralation between VanEck Multi and VanEck Polkadot
Assuming the 90 days trading horizon VanEck Multi is expected to generate 4.4 times less return on investment than VanEck Polkadot. But when comparing it to its historical volatility, VanEck Multi Asset Growth is 12.0 times less risky than VanEck Polkadot. It trades about 0.14 of its potential returns per unit of risk. VanEck Polkadot ETN is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 226.00 in VanEck Polkadot ETN on September 2, 2024 and sell it today you would earn a total of 44.00 from holding VanEck Polkadot ETN or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Multi Asset Growth vs. VanEck Polkadot ETN
Performance |
| Timeline |
| VanEck Multi Asset |
| VanEck Polkadot ETN |
VanEck Multi and VanEck Polkadot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Multi and VanEck Polkadot
The main advantage of trading using opposite VanEck Multi and VanEck Polkadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Multi position performs unexpectedly, VanEck Polkadot 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 Polkadot will offset losses from the drop in VanEck Polkadot's long position.| VanEck Multi vs. iShares Core MSCI | VanEck Multi vs. BlackRock ESG Multi Asset | VanEck Multi vs. Pershing Square Holdings | VanEck Multi vs. ASML Holding NV |
| VanEck Polkadot vs. Vanguard SP 500 | VanEck Polkadot vs. SPDR Dow Jones | VanEck Polkadot vs. iShares Core MSCI | VanEck Polkadot vs. iShares SP 500 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |