Correlation Between VanEck Green and Gogoro

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

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

Diversification Opportunities for VanEck Green and Gogoro

-0.76

Correlation Coefficient

VanEck Green  Gogoro

Pay attention - limited upside

The 3 months correlation between VanEck and Gogoro is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Green Bond and Gogoro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Inc and VanEck Green 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 Green Bond are associated (or correlated) with Gogoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Inc has no effect on the direction of VanEck Green i.e., VanEck Green and Gogoro go up and down completely randomly.

Pair Corralation between VanEck Green and Gogoro

Given the investment horizon of 90 days VanEck Green Bond is expected to generate 0.07 times more return on investment than Gogoro. However, VanEck Green Bond is 15.1 times less risky than Gogoro. It trades about 0.11 of its potential returns per unit of risk. Gogoro Inc is currently generating about -0.21 per unit of risk. If you would invest  2,363  in VanEck Green Bond on December 28, 2024 and sell it today you would earn a total of  33.00  from holding VanEck Green Bond or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

VanEck Green Bond  vs.  Gogoro Inc

VanEck Green Bond

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Green Bond are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, VanEck Green is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Gogoro Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gogoro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with VanEck Green and Gogoro

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

The idea behind VanEck Green Bond and Gogoro Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.