Correlation Between VanEck Inflation and TAKEDA

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Can any of the company-specific risk be diversified away by investing in both VanEck Inflation and TAKEDA 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 Inflation and TAKEDA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Inflation Allocation and TAKEDA PHARMACEUTICAL LTD, you can compare the effects of market volatilities on VanEck Inflation and TAKEDA 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 Inflation with a short position of TAKEDA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Inflation and TAKEDA.

Diversification Opportunities for VanEck Inflation and TAKEDA

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between VanEck and TAKEDA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Inflation Allocation and TAKEDA PHARMACEUTICAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAKEDA PHARMACEUTICAL LTD and VanEck Inflation 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 Inflation Allocation are associated (or correlated) with TAKEDA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAKEDA PHARMACEUTICAL LTD has no effect on the direction of VanEck Inflation i.e., VanEck Inflation and TAKEDA go up and down completely randomly.

Pair Corralation between VanEck Inflation and TAKEDA

Given the investment horizon of 90 days VanEck Inflation Allocation is expected to generate 0.72 times more return on investment than TAKEDA. However, VanEck Inflation Allocation is 1.39 times less risky than TAKEDA. It trades about 0.15 of its potential returns per unit of risk. TAKEDA PHARMACEUTICAL LTD is currently generating about -0.02 per unit of risk. If you would invest  3,314  in VanEck Inflation Allocation on September 2, 2025 and sell it today you would earn a total of  246.00  from holding VanEck Inflation Allocation or generate 7.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy75.38%
ValuesDaily Returns

VanEck Inflation Allocation  vs.  TAKEDA PHARMACEUTICAL LTD

 Performance 
       Timeline  
VanEck Inflation All 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Inflation Allocation are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, VanEck Inflation may actually be approaching a critical reversion point that can send shares even higher in January 2026.
TAKEDA PHARMACEUTICAL LTD 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days TAKEDA PHARMACEUTICAL LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TAKEDA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

VanEck Inflation and TAKEDA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VanEck Inflation and TAKEDA

The main advantage of trading using opposite VanEck Inflation and TAKEDA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Inflation position performs unexpectedly, TAKEDA 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 TAKEDA will offset losses from the drop in TAKEDA's long position.
The idea behind VanEck Inflation Allocation and TAKEDA PHARMACEUTICAL LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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