Correlation Between VanEck Green and Rose Hill

Can any of the company-specific risk be diversified away by investing in both VanEck Green and Rose Hill 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 Rose Hill 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 Rose Hill Acquisition, you can compare the effects of market volatilities on VanEck Green and Rose Hill 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 Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Green and Rose Hill.

Diversification Opportunities for VanEck Green and Rose Hill

0.0

Correlation Coefficient

VanEck Green  Rose Hill

Pay attention - limited upside

The 3 months correlation between VanEck and Rose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Green Bond and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition 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 Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of VanEck Green i.e., VanEck Green and Rose Hill go up and down completely randomly.

Pair Corralation between VanEck Green and Rose Hill

If you would invest  2,355  in VanEck Green Bond on December 27, 2024 and sell it today you would earn a total of  42.00  from holding VanEck Green Bond or generate 1.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VanEck Green Bond  vs.  Rose Hill Acquisition

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 10 (%) 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.

Rose Hill Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rose Hill Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Rose Hill is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with VanEck Green and Rose Hill

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

The idea behind VanEck Green Bond and Rose Hill Acquisition 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .