Correlation Between Add Value and VanEck Polkadot

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

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

Diversification Opportunities for Add Value and VanEck Polkadot

0.0

Correlation Coefficient

Add Value  VanEck Polkadot

Pay attention - limited upside

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

Pair Corralation between Add Value and VanEck Polkadot

If you would invest  9,136  in Add Value Fund on April 24, 2025 and sell it today you would earn a total of  1,403  from holding Add Value Fund or generate 15.36% return on investment over 90 days.

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

Add Value Fund  vs.  VanEck Polkadot ETN

Add Value Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Add Value Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating basic indicators, Add Value sustained solid returns over the last few months and may actually be approaching a breakup point.

VanEck Polkadot ETN

Risk-Adjusted Performance

Weak

Over the last 90 days VanEck Polkadot ETN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, VanEck Polkadot is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Add Value and VanEck Polkadot

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

The idea behind Add Value Fund and VanEck Polkadot ETN 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.