Correlation Between VanEck Defense and VanEck Solana

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

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

Diversification Opportunities for VanEck Defense and VanEck Solana

0.0

Correlation Coefficient

VanEck Defense  VanEck Solana

Pay attention - limited upside

The 3 months correlation between VanEck and VanEck is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Defense ETF 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 VanEck Defense 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 Defense ETF 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 VanEck Defense i.e., VanEck Defense and VanEck Solana go up and down completely randomly.

Pair Corralation between VanEck Defense and VanEck Solana

If you would invest  837.00  in VanEck Solana ETN on October 22, 2024 and sell it today you would earn a total of  328.00  from holding VanEck Solana ETN or generate 39.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VanEck Defense ETF  vs.  VanEck Solana ETN

VanEck Defense ETF

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days VanEck Defense ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, VanEck Defense is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

VanEck Solana ETN

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Solana ETN are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, VanEck Solana exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VanEck Defense and VanEck Solana

The main advantage of trading using opposite VanEck Defense and VanEck Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Defense 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 VanEck Defense ETF 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.