Correlation Between VanEck ETF and WEEK

Can any of the company-specific risk be diversified away by investing in both VanEck ETF and WEEK 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 ETF and WEEK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VanEck ETF Trust and WEEK, you can compare the effects of market volatilities on VanEck ETF and WEEK 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 ETF with a short position of WEEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ETF and WEEK.

Diversification Opportunities for VanEck ETF and WEEK

0.88

Correlation Coefficient

VanEck ETF  WEEK

Very poor diversification

The 3 months correlation between VanEck and WEEK is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and WEEK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEEK and VanEck ETF 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 ETF Trust are associated (or correlated) with WEEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEEK has no effect on the direction of VanEck ETF i.e., VanEck ETF and WEEK go up and down completely randomly.

Pair Corralation between VanEck ETF and WEEK

Given the investment horizon of 90 days VanEck ETF Trust is expected to generate 3.06 times more return on investment than WEEK. However, VanEck ETF is 3.06 times more volatile than WEEK. It trades about 0.26 of its potential returns per unit of risk. WEEK is currently generating about 0.46 per unit of risk. If you would invest  4,991  in VanEck ETF Trust on July 21, 2025 and sell it today you would earn a total of  89.00  from holding VanEck ETF Trust or generate 1.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

VanEck ETF Trust  vs.  WEEK

VanEck ETF Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck ETF Trust are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, VanEck ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

WEEK

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in WEEK are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, WEEK is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with VanEck ETF and WEEK

The main advantage of trading using opposite VanEck ETF and WEEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ETF position performs unexpectedly, WEEK 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 WEEK will offset losses from the drop in WEEK's long position.

The idea behind VanEck ETF Trust and WEEK 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.