Correlation Between VanEck Smart and VanEck Crypto

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

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

Diversification Opportunities for VanEck Smart and VanEck Crypto

0.94

Correlation Coefficient

VanEck Smart  VanEck Crypto

Almost no diversification

The 3 months correlation between VanEck and VanEck is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Smart Contract and VanEck Crypto and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Crypto and VanEck Smart 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 Smart Contract are associated (or correlated) with VanEck Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Crypto has no effect on the direction of VanEck Smart i.e., VanEck Smart and VanEck Crypto go up and down completely randomly.

Pair Corralation between VanEck Smart and VanEck Crypto

Assuming the 90 days trading horizon VanEck Smart Contract is expected to generate 0.96 times more return on investment than VanEck Crypto. However, VanEck Smart Contract is 1.04 times less risky than VanEck Crypto. It trades about -0.11 of its potential returns per unit of risk. VanEck Crypto and is currently generating about -0.12 per unit of risk. If you would invest  1,148  in VanEck Smart Contract on December 30, 2024 and sell it today you would lose (423.00) from holding VanEck Smart Contract or give up 36.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

VanEck Smart Contract  vs.  VanEck Crypto and

VanEck Smart Contract

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Smart Contract has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

VanEck Crypto

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Crypto and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Pair Trading with VanEck Smart and VanEck Crypto

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

The idea behind VanEck Smart Contract and VanEck Crypto and 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.