Correlation Between VanEck Mortgage and New York

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

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

Diversification Opportunities for VanEck Mortgage and New York

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Correlation Coefficient

VanEck Mortgage  New York

Pay attention - limited upside

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

Pair Corralation between VanEck Mortgage and New York

If you would invest  1,044  in VanEck Mortgage REIT on December 28, 2024 and sell it today you would earn a total of  79.00  from holding VanEck Mortgage REIT or generate 7.57% return on investment over 90 days.

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

VanEck Mortgage REIT  vs.  New York Life

VanEck Mortgage REIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Mortgage REIT are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, VanEck Mortgage may actually be approaching a critical reversion point that can send shares even higher in April 2025.

New York Life

Risk-Adjusted Performance

Very Weak

Over the last 90 days New York Life has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, New York is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VanEck Mortgage and New York

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

The idea behind VanEck Mortgage REIT and New York Life 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.