Correlation Between Rivernorth Opportunistic and VanEck International

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

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

Diversification Opportunities for Rivernorth Opportunistic and VanEck International

0.49

Correlation Coefficient

Rivernorth Opportunistic  VanEck International

Very weak diversification

The 3 months correlation between Rivernorth and VanEck is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Rivernorth Opportunistic Munic and VanEck International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck International High and Rivernorth Opportunistic 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 Rivernorth Opportunistic Municipalome are associated (or correlated) with VanEck International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck International High has no effect on the direction of Rivernorth Opportunistic i.e., Rivernorth Opportunistic and VanEck International go up and down completely randomly.

Pair Corralation between Rivernorth Opportunistic and VanEck International

Considering the 90-day investment horizon Rivernorth Opportunistic Municipalome is expected to generate 1.29 times more return on investment than VanEck International. However, Rivernorth Opportunistic is 1.29 times more volatile than VanEck International High. It trades about 0.13 of its potential returns per unit of risk. VanEck International High is currently generating about 0.12 per unit of risk. If you would invest  1,462  in Rivernorth Opportunistic Municipalome on December 26, 2024 and sell it today you would earn a total of  62.00  from holding Rivernorth Opportunistic Municipalome or generate 4.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Rivernorth Opportunistic Munic  vs.  VanEck International High

Rivernorth Opportunistic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rivernorth Opportunistic Municipalome are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong primary indicators, Rivernorth Opportunistic is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

VanEck International High

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck International High are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical indicators, VanEck International is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Rivernorth Opportunistic and VanEck International

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

The idea behind Rivernorth Opportunistic Municipalome and VanEck International High 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.