Correlation Between VanEck Polkadot and DGB Group

Can any of the company-specific risk be diversified away by investing in both VanEck Polkadot and DGB Group 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 DGB Group 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 DGB Group NV, you can compare the effects of market volatilities on VanEck Polkadot and DGB Group 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 DGB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Polkadot and DGB Group.

Diversification Opportunities for VanEck Polkadot and DGB Group

0.0

Correlation Coefficient

VanEck Polkadot  DGB Group

Pay attention - limited upside

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

Pair Corralation between VanEck Polkadot and DGB Group

If you would invest  67.00  in DGB Group NV on October 7, 2024 and sell it today you would earn a total of  18.00  from holding DGB Group NV or generate 26.87% return on investment over 90 days.

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

VanEck Polkadot ETN  vs.  DGB Group NV

VanEck Polkadot ETN

Risk-Adjusted Performance

0 of 100

OK

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 comparatively stable basic indicators, VanEck Polkadot is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

DGB Group NV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DGB Group NV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, DGB Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VanEck Polkadot and DGB Group

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

The idea behind VanEck Polkadot ETN and DGB Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.