Correlation Between VanEck Vietnam and WisdomTree India
Can any of the company-specific risk be diversified away by investing in both VanEck Vietnam and WisdomTree India 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 Vietnam and WisdomTree India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vietnam ETF and WisdomTree India Earnings, you can compare the effects of market volatilities on VanEck Vietnam and WisdomTree India 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 Vietnam with a short position of WisdomTree India. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vietnam and WisdomTree India.
Diversification Opportunities for VanEck Vietnam and WisdomTree India
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VanEck and WisdomTree is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vietnam ETF and WisdomTree India Earnings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree India Earnings and VanEck Vietnam 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 Vietnam ETF are associated (or correlated) with WisdomTree India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree India Earnings has no effect on the direction of VanEck Vietnam i.e., VanEck Vietnam and WisdomTree India go up and down completely randomly.
Pair Corralation between VanEck Vietnam and WisdomTree India
Considering the 90-day investment horizon VanEck Vietnam ETF is expected to under-perform the WisdomTree India. In addition to that, VanEck Vietnam is 1.04 times more volatile than WisdomTree India Earnings. It trades about -0.03 of its total potential returns per unit of risk. WisdomTree India Earnings is currently generating about 0.08 per unit of volatility. If you would invest 3,873 in WisdomTree India Earnings on August 27, 2024 and sell it today you would earn a total of 788.00 from holding WisdomTree India Earnings or generate 20.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vietnam ETF vs. WisdomTree India Earnings
Performance |
| Timeline |
| VanEck Vietnam ETF |
| WisdomTree India Earnings |
VanEck Vietnam and WisdomTree India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vietnam and WisdomTree India
The main advantage of trading using opposite VanEck Vietnam and WisdomTree India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vietnam position performs unexpectedly, WisdomTree India 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 WisdomTree India will offset losses from the drop in WisdomTree India's long position.| VanEck Vietnam vs. iShares MSCI Thailand | VanEck Vietnam vs. iShares MSCI Indonesia | VanEck Vietnam vs. iShares MSCI Turkey | VanEck Vietnam vs. iShares MSCI Philippines |
| WisdomTree India vs. Invesco India ETF | WisdomTree India vs. iShares India 50 | WisdomTree India vs. iShares MSCI India | WisdomTree India vs. iShares MSCI Mexico |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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