Correlation Between VanEck Semiconductor and VanEck Crypto

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

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

Diversification Opportunities for VanEck Semiconductor and VanEck Crypto

0.85

Correlation Coefficient

VanEck Semiconductor  VanEck Crypto

Very poor diversification

The 3 months correlation between VanEck and VanEck is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Semiconductor UCITS and VanEck Crypto Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Crypto Blockchain and VanEck Semiconductor 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 Semiconductor UCITS are associated (or correlated) with VanEck Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Crypto Blockchain has no effect on the direction of VanEck Semiconductor i.e., VanEck Semiconductor and VanEck Crypto go up and down completely randomly.

Pair Corralation between VanEck Semiconductor and VanEck Crypto

Assuming the 90 days trading horizon VanEck Semiconductor UCITS is expected to generate 0.4 times more return on investment than VanEck Crypto. However, VanEck Semiconductor UCITS is 2.48 times less risky than VanEck Crypto. It trades about -0.09 of its potential returns per unit of risk. VanEck Crypto Blockchain is currently generating about -0.11 per unit of risk. If you would invest  3,313  in VanEck Semiconductor UCITS on December 29, 2024 and sell it today you would lose (426.00) from holding VanEck Semiconductor UCITS or give up 12.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

VanEck Semiconductor UCITS  vs.  VanEck Crypto Blockchain

VanEck Semiconductor

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Semiconductor UCITS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

VanEck Crypto Blockchain

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Crypto Blockchain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Pair Trading with VanEck Semiconductor and VanEck Crypto

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

The idea behind VanEck Semiconductor UCITS and VanEck Crypto Blockchain 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .