Correlation Between VanEck Polkadot and Alumexx NV

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

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

Diversification Opportunities for VanEck Polkadot and Alumexx NV

-0.69

Correlation Coefficient

VanEck Polkadot  Alumexx NV

Excellent diversification

The 3 months correlation between VanEck and Alumexx is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Polkadot ETN and Alumexx NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumexx NV and VanEck Polkadot 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 Polkadot ETN are associated (or correlated) with Alumexx NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumexx NV has no effect on the direction of VanEck Polkadot i.e., VanEck Polkadot and Alumexx NV go up and down completely randomly.

Pair Corralation between VanEck Polkadot and Alumexx NV

Assuming the 90 days trading horizon VanEck Polkadot ETN is expected to under-perform the Alumexx NV. In addition to that, VanEck Polkadot is 2.54 times more volatile than Alumexx NV. It trades about -0.14 of its total potential returns per unit of risk. Alumexx NV is currently generating about 0.1 per unit of volatility. If you would invest  125.00  in Alumexx NV on December 25, 2024 and sell it today you would earn a total of  13.00  from holding Alumexx NV or generate 10.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

VanEck Polkadot ETN  vs.  Alumexx NV

VanEck Polkadot ETN

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Polkadot ETN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain 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.

Alumexx NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alumexx NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Alumexx NV may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with VanEck Polkadot and Alumexx NV

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

The idea behind VanEck Polkadot ETN and Alumexx NV 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.