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
VanEck Vectors Biotech ETF vs Health Care Select Sector SPDR
Considering 30-days investment horizon, VanEck Vectors is expected to generate 1.44 times less return on investment than Health Care. In addition to that, VanEck Vectors is 1.85 times more volatile than Health Care Select Sector SPDR ETF. It trades about 0.27 of its total potential returns per unit of risk. Health Care Select Sector SPDR ETF is currently generating about 0.73 per unit of volatility. If you would invest 8,293 in Health Care Select Sector SPDR ETF on December 24, 2017 and sell it today you would earn a total of 609 from holding Health Care Select Sector SPDR ETF or generate 7.34% return on investment over 30 days.
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Very 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.
Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Vectors Biotech ETF are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Select Sector SPDR ETF are ranked lower than 48 (%) of all global equities and portfolios over the last 30 days.