Correlation Between VanEck Indonesia and Militia LongShort
Can any of the company-specific risk be diversified away by investing in both VanEck Indonesia and Militia LongShort 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 Indonesia and Militia LongShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Indonesia Index and Militia LongShort Equity, you can compare the effects of market volatilities on VanEck Indonesia and Militia LongShort 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 Indonesia with a short position of Militia LongShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Indonesia and Militia LongShort.
Diversification Opportunities for VanEck Indonesia and Militia LongShort
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and Militia is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Indonesia Index and Militia LongShort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Militia LongShort Equity and VanEck Indonesia 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 Indonesia Index are associated (or correlated) with Militia LongShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Militia LongShort Equity has no effect on the direction of VanEck Indonesia i.e., VanEck Indonesia and Militia LongShort go up and down completely randomly.
Pair Corralation between VanEck Indonesia and Militia LongShort
Considering the 90-day investment horizon VanEck Indonesia Index is expected to generate 1.3 times more return on investment than Militia LongShort. However, VanEck Indonesia is 1.3 times more volatile than Militia LongShort Equity. It trades about 0.18 of its potential returns per unit of risk. Militia LongShort Equity is currently generating about 0.23 per unit of risk. If you would invest 1,662 in VanEck Indonesia Index on September 7, 2025 and sell it today you would earn a total of 48.00 from holding VanEck Indonesia Index or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
VanEck Indonesia Index vs. Militia LongShort Equity
Performance |
| Timeline |
| VanEck Indonesia Index |
| Militia LongShort Equity |
VanEck Indonesia and Militia LongShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Indonesia and Militia LongShort
The main advantage of trading using opposite VanEck Indonesia and Militia LongShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Indonesia position performs unexpectedly, Militia LongShort 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 Militia LongShort will offset losses from the drop in Militia LongShort's long position.| VanEck Indonesia vs. Strategy Shares | VanEck Indonesia vs. Freedom Day Dividend | VanEck Indonesia vs. Franklin Templeton ETF | VanEck Indonesia vs. iShares MSCI China |
| Militia LongShort vs. Strategy Shares | Militia LongShort vs. Freedom Day Dividend | Militia LongShort vs. Franklin Templeton ETF | Militia LongShort vs. iShares MSCI China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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