Correlation Between VanEck Polkadot and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both VanEck Polkadot and IShares MSCI 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 Polkadot and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Polkadot ETN and iShares MSCI EM, you can compare the effects of market volatilities on VanEck Polkadot and IShares MSCI 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 Polkadot with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Polkadot and IShares MSCI.
Diversification Opportunities for VanEck Polkadot and IShares MSCI
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and IShares is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Polkadot ETN and iShares MSCI EM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI EM and VanEck Polkadot 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 Polkadot ETN are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI EM has no effect on the direction of VanEck Polkadot i.e., VanEck Polkadot and IShares MSCI go up and down completely randomly.
Pair Corralation between VanEck Polkadot and IShares MSCI
Assuming the 90 days trading horizon VanEck Polkadot ETN is expected to under-perform the IShares MSCI. In addition to that, VanEck Polkadot is 11.13 times more volatile than iShares MSCI EM. It trades about -0.04 of its total potential returns per unit of risk. iShares MSCI EM is currently generating about -0.37 per unit of volatility. If you would invest 1,342 in iShares MSCI EM on September 24, 2024 and sell it today you would lose (102.00) from holding iShares MSCI EM or give up 7.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
VanEck Polkadot ETN vs. iShares MSCI EM
Performance |
Timeline |
VanEck Polkadot ETN |
iShares MSCI EM |
VanEck Polkadot and IShares MSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck Polkadot and IShares MSCI
The main advantage of trading using opposite VanEck Polkadot and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Polkadot position performs unexpectedly, IShares MSCI 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 MSCI will offset losses from the drop in IShares MSCI's long position.VanEck Polkadot vs. iShares Euro Dividend | VanEck Polkadot vs. iShares II Public | VanEck Polkadot vs. Vanguard USD Treasury | VanEck Polkadot vs. VanEck Global Real |
IShares MSCI vs. SPDR Dow Jones | IShares MSCI vs. iShares Core MSCI | IShares MSCI vs. Vanguard FTSE All World | IShares MSCI vs. iShares China CNY |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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