Correlation Between Xtrackers and VanEck Vectors
Can any of the company-specific risk be diversified away by investing in both Xtrackers and VanEck Vectors 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 Xtrackers and VanEck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers II and VanEck Vectors UCITS, you can compare the effects of market volatilities on Xtrackers and VanEck Vectors 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 Xtrackers with a short position of VanEck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and VanEck Vectors.
Diversification Opportunities for Xtrackers and VanEck Vectors
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xtrackers and VanEck is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and VanEck Vectors UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors UCITS and Xtrackers 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 Xtrackers II are associated (or correlated) with VanEck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors UCITS has no effect on the direction of Xtrackers i.e., Xtrackers and VanEck Vectors go up and down completely randomly.
Pair Corralation between Xtrackers and VanEck Vectors
Assuming the 90 days trading horizon Xtrackers II is expected to generate 1.39 times more return on investment than VanEck Vectors. However, Xtrackers is 1.39 times more volatile than VanEck Vectors UCITS. It trades about 0.1 of its potential returns per unit of risk. VanEck Vectors UCITS is currently generating about 0.07 per unit of risk. If you would invest 749.00 in Xtrackers II on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Xtrackers II or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Xtrackers II vs. VanEck Vectors UCITS
Performance |
| Timeline |
| Xtrackers II |
| VanEck Vectors UCITS |
Xtrackers and VanEck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and VanEck Vectors
The main advantage of trading using opposite Xtrackers and VanEck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, VanEck Vectors 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 Vectors will offset losses from the drop in VanEck Vectors' long position.| Xtrackers vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
| VanEck Vectors vs. VanEck Sustainable European | VanEck Vectors vs. VanEck Solana ETN | VanEck Vectors vs. VanEck Smart Contract | VanEck Vectors vs. VanEck Vectors Morningstar |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |