Correlation Between VIIX and VanEck Emerging
Can any of the company-specific risk be diversified away by investing in both VIIX and VanEck Emerging 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 VIIX and VanEck Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIIX and VanEck Emerging Markets, you can compare the effects of market volatilities on VIIX and VanEck Emerging 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 VIIX with a short position of VanEck Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIIX and VanEck Emerging.
Diversification Opportunities for VIIX and VanEck Emerging
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VIIX and VanEck is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding VIIX and VanEck Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Emerging Markets and VIIX 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 VIIX are associated (or correlated) with VanEck Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Emerging Markets has no effect on the direction of VIIX i.e., VIIX and VanEck Emerging go up and down completely randomly.
Pair Corralation between VIIX and VanEck Emerging
If you would invest 1,953 in VanEck Emerging Markets on August 29, 2024 and sell it today you would earn a total of 11.00 from holding VanEck Emerging Markets or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
VIIX vs. VanEck Emerging Markets
Performance |
| Timeline |
| VIIX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VanEck Emerging Markets |
VIIX and VanEck Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIIX and VanEck Emerging
The main advantage of trading using opposite VIIX and VanEck Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIIX position performs unexpectedly, VanEck Emerging 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 Emerging will offset losses from the drop in VanEck Emerging's long position.| VIIX vs. FT Vest Equity | VIIX vs. Zillow Group Class | VIIX vs. Northern Lights | VIIX vs. VanEck Vectors Moodys |
| VanEck Emerging vs. BondBloxx ETF Trust | VanEck Emerging vs. Virtus ETF Trust | VanEck Emerging vs. Ocean Park High | VanEck Emerging vs. Virtus ETF Trust |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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