Correlation Between VIIX and VanEck Video

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

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

Diversification Opportunities for VIIX and VanEck Video

0.0

Correlation Coefficient

VIIX  VanEck Video

Pay attention - limited upside

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

Pair Corralation between VIIX and VanEck Video

If you would invest  8,422  in VanEck Video Gaming on December 20, 2024 and sell it today you would earn a total of  583.00  from holding VanEck Video Gaming or generate 6.92% return on investment over 90 days.

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

VIIX  vs.  VanEck Video Gaming

VIIX

Risk-Adjusted Performance

Very Weak

Over the last 90 days VIIX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, VIIX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

VanEck Video Gaming

Risk-Adjusted Performance

OK

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

Pair Trading with VIIX and VanEck Video

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

The idea behind VIIX and VanEck Video Gaming 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.