Correlation Between VanEck Vietnam and IXSE
Can any of the company-specific risk be diversified away by investing in both VanEck Vietnam and IXSE 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 IXSE 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 IXSE, you can compare the effects of market volatilities on VanEck Vietnam and IXSE 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 IXSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vietnam and IXSE.
Diversification Opportunities for VanEck Vietnam and IXSE
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and IXSE is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vietnam ETF and IXSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXSE 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 IXSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXSE has no effect on the direction of VanEck Vietnam i.e., VanEck Vietnam and IXSE go up and down completely randomly.
Pair Corralation between VanEck Vietnam and IXSE
If you would invest 3,388 in IXSE on August 30, 2024 and sell it today you would earn a total of 0.00 from holding IXSE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
VanEck Vietnam ETF vs. IXSE
Performance |
| Timeline |
| VanEck Vietnam ETF |
| IXSE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck Vietnam and IXSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vietnam and IXSE
The main advantage of trading using opposite VanEck Vietnam and IXSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vietnam position performs unexpectedly, IXSE 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 IXSE will offset losses from the drop in IXSE'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 |
| IXSE vs. iShares India 50 | IXSE vs. iShares MSCI China | IXSE vs. VanEck Vietnam ETF | IXSE vs. iShares MSCI India |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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