Pair Correlation 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.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 VanEck Vectors Biotech ETF  vs   Health Care Select Sector SPDR
 Performance (%) 
      Timeline 

Pair Volatility

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.

Correlation Coefficient

Pair Corralation between VanEck Vectors and Health Care
0.87

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

VanEck Vectors Biotech

  
17 

Risk-Adjusted Performance

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.

Health Care Select

  
48 

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 48 (%) of all global equities and portfolios over the last 30 days.