Correlation Between VanEck ETF and Brendan Wood

Can any of the company-specific risk be diversified away by investing in both VanEck ETF and Brendan Wood 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 Brendan Wood 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 Brendan Wood TopGun, you can compare the effects of market volatilities on VanEck ETF and Brendan Wood 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 Brendan Wood. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ETF and Brendan Wood.

Diversification Opportunities for VanEck ETF and Brendan Wood

0.06

Correlation Coefficient

VanEck ETF  Brendan Wood

Significant diversification

The 3 months correlation between VanEck and Brendan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and Brendan Wood TopGun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brendan Wood TopGun 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 Brendan Wood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brendan Wood TopGun has no effect on the direction of VanEck ETF i.e., VanEck ETF and Brendan Wood go up and down completely randomly.

Pair Corralation between VanEck ETF and Brendan Wood

Given the investment horizon of 90 days VanEck ETF is expected to generate 2.2 times less return on investment than Brendan Wood. In addition to that, VanEck ETF is 1.33 times more volatile than Brendan Wood TopGun. It trades about 0.03 of its total potential returns per unit of risk. Brendan Wood TopGun is currently generating about 0.1 per unit of volatility. If you would invest  3,798  in Brendan Wood TopGun on October 8, 2025 and sell it today you would earn a total of  164.00  from holding Brendan Wood TopGun or generate 4.32% return on investment over 90 days.

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

VanEck ETF Trust  vs.  Brendan Wood TopGun

VanEck ETF Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck ETF Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, VanEck ETF is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Brendan Wood TopGun

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Brendan Wood TopGun are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Brendan Wood is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VanEck ETF and Brendan Wood

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

The idea behind VanEck ETF Trust and Brendan Wood TopGun 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.