| GMET Etf | | | USD 24.95 0.39 1.59% |
The current 90-days correlation between VanEck Vectors ETF and VanEck Green Bond is 0.1 (i.e., Average diversification). The correlation of VanEck Vectors is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
VanEck Vectors Correlation With Market
Modest diversification
The correlation between VanEck Vectors ETF and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in VanEck Vectors ETF. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in income.