Correlation Between Astar and VanEck Solana

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

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

Diversification Opportunities for Astar and VanEck Solana

0.53

Correlation Coefficient

Astar  VanEck Solana

Very weak diversification

The 3 months correlation between Astar and VanEck is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Astar and VanEck Solana ETN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Solana ETN and Astar 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 Astar are associated (or correlated) with VanEck Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Solana ETN has no effect on the direction of Astar i.e., Astar and VanEck Solana go up and down completely randomly.

Pair Corralation between Astar and VanEck Solana

Assuming the 90 days trading horizon Astar is expected to under-perform the VanEck Solana. But the crypto coin apears to be less risky and, when comparing its historical volatility, Astar is 1.24 times less risky than VanEck Solana. The crypto coin trades about -0.19 of its potential returns per unit of risk. The VanEck Solana ETN is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  978.00  in VanEck Solana ETN on December 21, 2024 and sell it today you would lose (288.00) from holding VanEck Solana ETN or give up 29.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Astar  vs.  VanEck Solana ETN

Astar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Astar shareholders.

VanEck Solana ETN

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Solana ETN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Pair Trading with Astar and VanEck Solana

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

The idea behind Astar and VanEck Solana 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.