Correlation Between Stellar and Vaneck Vectors

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

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

Diversification Opportunities for Stellar and Vaneck Vectors

0.13

Correlation Coefficient

Stellar  Vaneck Vectors

Average diversification

The 3 months correlation between Stellar and Vaneck is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and Vaneck Vectors UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaneck Vectors UCITS and Stellar 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 Stellar are associated (or correlated) with Vaneck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaneck Vectors UCITS has no effect on the direction of Stellar i.e., Stellar and Vaneck Vectors go up and down completely randomly.

Pair Corralation between Stellar and Vaneck Vectors

Assuming the 90 days trading horizon Stellar is expected to under-perform the Vaneck Vectors. In addition to that, Stellar is 19.08 times more volatile than Vaneck Vectors UCITS. It trades about -0.06 of its total potential returns per unit of risk. Vaneck Vectors UCITS is currently generating about 0.03 per unit of volatility. If you would invest  4,654  in Vaneck Vectors UCITS on December 22, 2024 and sell it today you would earn a total of  29.00  from holding Vaneck Vectors UCITS or generate 0.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Stellar  vs.  Vaneck Vectors UCITS

Stellar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stellar 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 Crypto's primary 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 Stellar shareholders.

Vaneck Vectors UCITS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vaneck Vectors UCITS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Vaneck Vectors 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 Stellar and Vaneck Vectors

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

The idea behind Stellar and Vaneck Vectors UCITS 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..