Correlation Between VanEck ETF and IM Global

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

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

Diversification Opportunities for VanEck ETF and IM Global

0.0

Correlation Coefficient

VanEck ETF  IM Global

Pay attention - limited upside

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

Pair Corralation between VanEck ETF and IM Global

If you would invest (100.00) in IM Global Partner on December 19, 2024 and sell it today you would earn a total of  100.00  from holding IM Global Partner 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

VanEck ETF Trust  vs.  IM Global Partner

VanEck ETF Trust

Risk-Adjusted Performance

Very Weak

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

IM Global Partner

Risk-Adjusted Performance

Very Weak

Over the last 90 days IM Global Partner has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, IM Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with VanEck ETF and IM Global

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

The idea behind VanEck ETF Trust and IM Global Partner 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.