Correlation Between VanEck Vectors and SPDR SP
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors and SPDR SP 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 Vectors and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors ETF and SPDR SP Global, you can compare the effects of market volatilities on VanEck Vectors and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and SPDR SP.
Diversification Opportunities for VanEck Vectors and SPDR SP
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and SPDR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and SPDR SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Global 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 ETF are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Global has no effect on the direction of VanEck Vectors i.e., VanEck Vectors and SPDR SP go up and down completely randomly.
Pair Corralation between VanEck Vectors and SPDR SP
Considering the 90-day investment horizon VanEck Vectors ETF is expected to under-perform the SPDR SP. But the etf apears to be less risky and, when comparing its historical volatility, VanEck Vectors ETF is 2.77 times less risky than SPDR SP. The etf trades about -0.07 of its potential returns per unit of risk. The SPDR SP Global is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,900 in SPDR SP Global on March 12, 2025 and sell it today you would earn a total of 710.00 from holding SPDR SP Global or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors ETF vs. SPDR SP Global
Performance |
| Timeline |
| VanEck Vectors ETF |
| SPDR SP Global |
VanEck Vectors and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and SPDR SP
The main advantage of trading using opposite VanEck Vectors and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP's long position.| VanEck Vectors vs. Formidable Fortress ETF | VanEck Vectors vs. Sonida Senior Living | VanEck Vectors vs. China Yuchai International | VanEck Vectors vs. Nine Energy Service |
| SPDR SP vs. iShares Dividend and | SPDR SP vs. Martin Currie Sustainable | SPDR SP vs. AdvisorShares Gerber Kawasaki | SPDR SP vs. Amplify ETF Trust |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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