Correlation Between Van Eck and Formidable Fortress

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

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

Diversification Opportunities for Van Eck and Formidable Fortress

0.0

Correlation Coefficient

Van Eck  Formidable Fortress

Pay attention - limited upside

The 3 months correlation between Van and Formidable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Van Eck and Formidable Fortress ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formidable Fortress ETF and Van Eck 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 Van Eck are associated (or correlated) with Formidable Fortress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formidable Fortress ETF has no effect on the direction of Van Eck i.e., Van Eck and Formidable Fortress go up and down completely randomly.

Pair Corralation between Van Eck and Formidable Fortress

If you would invest  2,966  in Formidable Fortress ETF on July 15, 2025 and sell it today you would earn a total of  30.00  from holding Formidable Fortress ETF or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Van Eck  vs.  Formidable Fortress ETF

Van Eck

Risk-Adjusted Performance

Weakest

Over the last 90 days Van Eck has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Van Eck is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Formidable Fortress ETF

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Formidable Fortress ETF are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Formidable Fortress is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Van Eck and Formidable Fortress

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

The idea behind Van Eck and Formidable Fortress ETF 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.