Correlation Between IXSE and VanEck India

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

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

Diversification Opportunities for IXSE and VanEck India

0.0

Correlation Coefficient

IXSE  VanEck India

Pay attention - limited upside

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

Pair Corralation between IXSE and VanEck India

If you would invest (100.00) in IXSE on December 28, 2024 and sell it today you would earn a total of  100.00  from holding IXSE or generate -100.0% return on investment over 90 days.

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

IXSE  vs.  VanEck India Growth

IXSE

Risk-Adjusted Performance

Very Weak

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

VanEck India Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck India Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with IXSE and VanEck India

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

The idea behind IXSE and VanEck India Growth 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.