Correlation Between VanEck Vietnam and IShares
Can any of the company-specific risk be diversified away by investing in both VanEck Vietnam and IShares 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 IShares 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 IShares, you can compare the effects of market volatilities on VanEck Vietnam and IShares 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 IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vietnam and IShares.
Diversification Opportunities for VanEck Vietnam and IShares
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VanEck and IShares is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vietnam ETF and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares 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 IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of VanEck Vietnam i.e., VanEck Vietnam and IShares go up and down completely randomly.
Pair Corralation between VanEck Vietnam and IShares
If you would invest 1,156 in VanEck Vietnam ETF on November 3, 2024 and sell it today you would earn a total of 3.00 from holding VanEck Vietnam ETF or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
VanEck Vietnam ETF vs. IShares
Performance |
| Timeline |
| VanEck Vietnam ETF |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck Vietnam and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vietnam and IShares
The main advantage of trading using opposite VanEck Vietnam and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vietnam position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' 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 |
| IShares vs. iShares Currency Hedged | IShares vs. iShares Currency Hedged | IShares vs. iShares Currency Hedged |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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