Correlation Between VanEck Sustainable and Kempen Global

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

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

Diversification Opportunities for VanEck Sustainable and Kempen Global

0.93

Correlation Coefficient

VanEck Sustainable  Kempen Global

Almost no diversification

The 3 months correlation between VanEck and Kempen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Sustainable World and Kempen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempen Global High and VanEck Sustainable 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 Sustainable World are associated (or correlated) with Kempen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempen Global High has no effect on the direction of VanEck Sustainable i.e., VanEck Sustainable and Kempen Global go up and down completely randomly.

Pair Corralation between VanEck Sustainable and Kempen Global

Assuming the 90 days trading horizon VanEck Sustainable is expected to generate 1.05 times less return on investment than Kempen Global. In addition to that, VanEck Sustainable is 1.15 times more volatile than Kempen Global High. It trades about 0.22 of its total potential returns per unit of risk. Kempen Global High is currently generating about 0.26 per unit of volatility. If you would invest  3,580  in Kempen Global High on April 22, 2025 and sell it today you would earn a total of  435.00  from holding Kempen Global High or generate 12.15% return on investment over 90 days.

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

VanEck Sustainable World  vs.  Kempen Global High

VanEck Sustainable World

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Sustainable World are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, VanEck Sustainable may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Kempen Global High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kempen Global High are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat uncertain basic indicators, Kempen Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with VanEck Sustainable and Kempen Global

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

The idea behind VanEck Sustainable World and Kempen Global High 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.