Correlation Between Cabana Target and VanEck Low
Can any of the company-specific risk be diversified away by investing in both Cabana Target and VanEck Low 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 Cabana Target and VanEck Low into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cabana Target Drawdown and VanEck Low Carbon, you can compare the effects of market volatilities on Cabana Target and VanEck Low 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 Cabana Target with a short position of VanEck Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabana Target and VanEck Low.
Diversification Opportunities for Cabana Target and VanEck Low
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cabana and VanEck is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cabana Target Drawdown and VanEck Low Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Low Carbon and Cabana Target 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 Cabana Target Drawdown are associated (or correlated) with VanEck Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Low Carbon has no effect on the direction of Cabana Target i.e., Cabana Target and VanEck Low go up and down completely randomly.
Pair Corralation between Cabana Target and VanEck Low
Given the investment horizon of 90 days Cabana Target is expected to generate 1.7 times less return on investment than VanEck Low. But when comparing it to its historical volatility, Cabana Target Drawdown is 2.21 times less risky than VanEck Low. It trades about 0.05 of its potential returns per unit of risk. VanEck Low Carbon is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,879 in VanEck Low Carbon on October 6, 2025 and sell it today you would earn a total of 329.00 from holding VanEck Low Carbon or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabana Target Drawdown vs. VanEck Low Carbon
Performance |
| Timeline |
| Cabana Target Drawdown |
| VanEck Low Carbon |
Cabana Target and VanEck Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabana Target and VanEck Low
The main advantage of trading using opposite Cabana Target and VanEck Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabana Target position performs unexpectedly, VanEck Low 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 VanEck Low will offset losses from the drop in VanEck Low's long position.| Cabana Target vs. VanEck Low Carbon | Cabana Target vs. Inspire Global Hope | Cabana Target vs. AB High Dividend | Cabana Target vs. First Trust RiverFront |
| VanEck Low vs. KraneShares California Carbon | VanEck Low vs. Cabana Target Drawdown | VanEck Low vs. Inspire Global Hope | VanEck Low vs. AB High Dividend |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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