Correlation Between VanEck Sustainable and VanEck Defense
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By analyzing existing cross correlation between VanEck Sustainable European and VanEck Defense ETF, you can compare the effects of market volatilities on VanEck Sustainable and VanEck Defense 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 Sustainable with a short position of VanEck Defense. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Sustainable and VanEck Defense.
Diversification Opportunities for VanEck Sustainable and VanEck Defense
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and VanEck is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Sustainable European and VanEck Defense ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Defense ETF and VanEck Sustainable 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 Sustainable European are associated (or correlated) with VanEck Defense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Defense ETF has no effect on the direction of VanEck Sustainable i.e., VanEck Sustainable and VanEck Defense go up and down completely randomly.
Pair Corralation between VanEck Sustainable and VanEck Defense
Assuming the 90 days trading horizon VanEck Sustainable European is expected to under-perform the VanEck Defense. But the etf apears to be less risky and, when comparing its historical volatility, VanEck Sustainable European is 2.35 times less risky than VanEck Defense. The etf trades about -0.06 of its potential returns per unit of risk. The VanEck Defense ETF is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,085 in VanEck Defense ETF on September 25, 2024 and sell it today you would earn a total of 397.00 from holding VanEck Defense ETF or generate 12.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
VanEck Sustainable European vs. VanEck Defense ETF
Performance |
Timeline |
VanEck Sustainable |
VanEck Defense ETF |
VanEck Sustainable and VanEck Defense Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck Sustainable and VanEck Defense
The main advantage of trading using opposite VanEck Sustainable and VanEck Defense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Sustainable position performs unexpectedly, VanEck Defense 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 Defense will offset losses from the drop in VanEck Defense's long position.VanEck Sustainable vs. UBS Fund Solutions | VanEck Sustainable vs. Xtrackers II | VanEck Sustainable vs. Xtrackers Nikkei 225 | VanEck Sustainable vs. iShares VII PLC |
VanEck Defense vs. UBS Fund Solutions | VanEck Defense vs. Xtrackers II | VanEck Defense vs. Xtrackers Nikkei 225 | VanEck Defense vs. iShares VII PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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