Correlation Between VanEck Vectors and HANetf ICAV

Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and HANetf ICAV 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 Vectors and HANetf ICAV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VanEck Vectors Video and HANetf ICAV , you can compare the effects of market volatilities on VanEck Vectors and HANetf ICAV 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 Vectors with a short position of HANetf ICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and HANetf ICAV.

Diversification Opportunities for VanEck Vectors and HANetf ICAV

0.92

Correlation Coefficient

VanEck Vectors  HANetf ICAV

Almost no diversification

The 3 months correlation between VanEck and HANetf is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Video and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV and VanEck Vectors 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 Vectors Video are associated (or correlated) with HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and HANetf ICAV go up and down completely randomly.

Pair Corralation between VanEck Vectors and HANetf ICAV

Assuming the 90 days trading horizon VanEck Vectors Video is expected to generate 0.95 times more return on investment than HANetf ICAV. However, VanEck Vectors Video is 1.05 times less risky than HANetf ICAV. It trades about 0.1 of its potential returns per unit of risk. HANetf ICAV is currently generating about 0.07 per unit of risk. If you would invest  2,733  in VanEck Vectors Video on October 4, 2024 and sell it today you would earn a total of  2,472  from holding VanEck Vectors Video or generate 90.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

VanEck Vectors Video  vs.  HANetf ICAV

VanEck Vectors Video

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Vectors Video are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, VanEck Vectors reported solid returns over the last few months and may actually be approaching a breakup point.

HANetf ICAV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HANetf ICAV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, HANetf ICAV reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VanEck Vectors and HANetf ICAV

The main advantage of trading using opposite VanEck Vectors and HANetf ICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, HANetf ICAV 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 HANetf ICAV will offset losses from the drop in HANetf ICAV's long position.

The idea behind VanEck Vectors Video and HANetf ICAV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.