Correlation Analysis Between VanEck Vectors and Health Care

This module allows you to analyze existing cross correlation between VanEck Vectors Biotech ETF and Health Care Select Sector SPDR ETF. You can compare the effects of market volatilities on VanEck Vectors and Health Care 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 Vectors with a short position of Health Care. See also your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and Health Care.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

VanEck Vectors Biotech  
6

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Vectors Biotech ETF are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.
Health Care Select  
1

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Select Sector SPDR ETF are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

VanEck Vectors and Health Care Volatility Contrast

 Predicted Return Density 
      Returns 

VanEck Vectors Biotech ETF  vs.  Health Care Select Sector SPDR

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, VanEck Vectors Biotech ETF is expected to generate 1.14 times more return on investment than Health Care. However, VanEck Vectors is 1.14 times more volatile than Health Care Select Sector SPDR ETF. It trades about 0.1 of its potential returns per unit of risk. Health Care Select Sector SPDR ETF is currently generating about 0.02 per unit of risk. If you would invest  11,820  in VanEck Vectors Biotech ETF on December 23, 2018 and sell it today you would earn a total of  948.00  from holding VanEck Vectors Biotech ETF or generate 8.02% return on investment over 30 days.

Pair Corralation between VanEck Vectors and Health Care

0.76
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for VanEck Vectors and Health Care

VanEck Vectors Biotech ETF diversification synergy

Poor diversification

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

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See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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