Correlation Between VanEck Inflation and Advocate Capital

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

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

Diversification Opportunities for VanEck Inflation and Advocate Capital

0.0

Correlation Coefficient

VanEck Inflation  Advocate Capital

Pay attention - limited upside

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

Pair Corralation between VanEck Inflation and Advocate Capital

If you would invest  2,794  in VanEck Inflation Allocation on December 29, 2024 and sell it today you would earn a total of  226.00  from holding VanEck Inflation Allocation or generate 8.09% return on investment over 90 days.

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

VanEck Inflation Allocation  vs.  Advocate Capital Management

VanEck Inflation All

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Inflation Allocation are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, VanEck Inflation may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Advocate Capital Man

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advocate Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Advocate Capital is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with VanEck Inflation and Advocate Capital

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

The idea behind VanEck Inflation Allocation and Advocate Capital Management 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..