Correlation Between VanEck China and IBMJ
Can any of the company-specific risk be diversified away by investing in both VanEck China and IBMJ 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 China and IBMJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck China Bond and IBMJ, you can compare the effects of market volatilities on VanEck China and IBMJ 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 China with a short position of IBMJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck China and IBMJ.
Diversification Opportunities for VanEck China and IBMJ
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and IBMJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VanEck China Bond and IBMJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBMJ and VanEck China 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 China Bond are associated (or correlated) with IBMJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBMJ has no effect on the direction of VanEck China i.e., VanEck China and IBMJ go up and down completely randomly.
Pair Corralation between VanEck China and IBMJ
If you would invest 2,176 in VanEck China Bond on January 27, 2024 and sell it today you would earn a total of 15.00 from holding VanEck China Bond or generate 0.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
VanEck China Bond vs. IBMJ
Performance |
Timeline |
VanEck China Bond |
IBMJ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck China and IBMJ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck China and IBMJ
The main advantage of trading using opposite VanEck China and IBMJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck China position performs unexpectedly, IBMJ 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 IBMJ will offset losses from the drop in IBMJ's long position.VanEck China vs. SPDR Bloomberg Emerging | VanEck China vs. Vanguard Emerging Markets | VanEck China vs. SPDR Bloomberg Barclays | VanEck China vs. VanEck JP Morgan |
Check out your portfolio center.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 Stocks Directory module to find actively traded stocks across global markets.
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