Correlation Between VanEck Polkadot and VanEck Global

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

Diversification Opportunities for VanEck Polkadot and VanEck Global

-0.25

Correlation Coefficient

VanEck Polkadot  VanEck Global

Very good diversification

The 3 months correlation between VanEck and VanEck is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Polkadot ETN and VanEck Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Global Real 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 VanEck Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Global Real has no effect on the direction of VanEck Polkadot i.e., VanEck Polkadot and VanEck Global go up and down completely randomly.

Pair Corralation between VanEck Polkadot and VanEck Global

Assuming the 90 days trading horizon VanEck Polkadot ETN is expected to under-perform the VanEck Global. In addition to that, VanEck Polkadot is 5.86 times more volatile than VanEck Global Real. It trades about -0.17 of its total potential returns per unit of risk. VanEck Global Real is currently generating about 0.01 per unit of volatility. If you would invest  3,830  in VanEck Global Real on December 30, 2024 and sell it today you would earn a total of  20.00  from holding VanEck Global Real or generate 0.52% return on investment over 90 days.

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

VanEck Polkadot ETN  vs.  VanEck Global Real

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.

VanEck Global Real

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Global Real are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, VanEck Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VanEck Polkadot and VanEck Global

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

The idea behind VanEck Polkadot ETN and VanEck Global Real 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.