Correlation Between HANetf ICAV and Vanguard FTSE
Can any of the company-specific risk be diversified away by investing in both HANetf ICAV and Vanguard FTSE 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 HANetf ICAV and Vanguard FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANetf ICAV and Vanguard FTSE All World, you can compare the effects of market volatilities on HANetf ICAV and Vanguard FTSE 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 HANetf ICAV with a short position of Vanguard FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANetf ICAV and Vanguard FTSE.
Diversification Opportunities for HANetf ICAV and Vanguard FTSE
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HANetf and Vanguard is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding HANetf ICAV and Vanguard FTSE All World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE All and HANetf ICAV 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 HANetf ICAV are associated (or correlated) with Vanguard FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE All has no effect on the direction of HANetf ICAV i.e., HANetf ICAV and Vanguard FTSE go up and down completely randomly.
Pair Corralation between HANetf ICAV and Vanguard FTSE
Assuming the 90 days trading horizon HANetf ICAV is expected to generate 2.46 times more return on investment than Vanguard FTSE. However, HANetf ICAV is 2.46 times more volatile than Vanguard FTSE All World. It trades about 0.11 of its potential returns per unit of risk. Vanguard FTSE All World is currently generating about 0.1 per unit of risk. If you would invest 1,270 in HANetf ICAV on October 13, 2024 and sell it today you would earn a total of 146.00 from holding HANetf ICAV or generate 11.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
HANetf ICAV vs. Vanguard FTSE All World
Performance |
Timeline |
HANetf ICAV |
Vanguard FTSE All |
HANetf ICAV and Vanguard FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HANetf ICAV and Vanguard FTSE
The main advantage of trading using opposite HANetf ICAV and Vanguard FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANetf ICAV position performs unexpectedly, Vanguard FTSE 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 Vanguard FTSE will offset losses from the drop in Vanguard FTSE's long position.HANetf ICAV vs. UBS Fund Solutions | ||
HANetf ICAV vs. Xtrackers II | ||
HANetf ICAV vs. Xtrackers Nikkei 225 | ||
HANetf ICAV vs. iShares VII PLC |
Vanguard FTSE vs. Vanguard ESG Developed | ||
Vanguard FTSE vs. Vanguard Funds Public | ||
Vanguard FTSE vs. Vanguard Funds PLC | ||
Vanguard FTSE vs. Vanguard Funds Public |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Stocks Directory Find actively traded stocks across global markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |