Correlation Between VanEck Hydrogen and VanEck Solana
Can any of the company-specific risk be diversified away by investing in both VanEck Hydrogen 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 Hydrogen 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 Hydrogen Economy and VanEck Solana ETN, you can compare the effects of market volatilities on VanEck Hydrogen 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 Hydrogen with a short position of VanEck Solana. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Hydrogen and VanEck Solana.
Diversification Opportunities for VanEck Hydrogen and VanEck Solana
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and VanEck is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Hydrogen Economy 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 Hydrogen 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 Hydrogen Economy 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 Hydrogen i.e., VanEck Hydrogen and VanEck Solana go up and down completely randomly.
Pair Corralation between VanEck Hydrogen and VanEck Solana
Assuming the 90 days trading horizon VanEck Hydrogen Economy is expected to generate 0.24 times more return on investment than VanEck Solana. However, VanEck Hydrogen Economy is 4.13 times less risky than VanEck Solana. It trades about -0.15 of its potential returns per unit of risk. VanEck Solana ETN is currently generating about -0.05 per unit of risk. If you would invest 500.00 in VanEck Hydrogen Economy on December 30, 2024 and sell it today you would lose (83.00) from holding VanEck Hydrogen Economy or give up 16.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
VanEck Hydrogen Economy vs. VanEck Solana ETN
Performance |
Timeline |
VanEck Hydrogen Economy |
VanEck Solana ETN |
VanEck Hydrogen and VanEck Solana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck Hydrogen and VanEck Solana
The main advantage of trading using opposite VanEck Hydrogen and VanEck Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Hydrogen 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.VanEck Hydrogen vs. VanEck Solana ETN | VanEck Hydrogen vs. VanEck Sustainable World | VanEck Hydrogen vs. VanEck iBoxx EUR | VanEck Hydrogen vs. VanEck Global Fallen |
VanEck Solana vs. VanEck Sustainable World | VanEck Solana vs. VanEck iBoxx EUR | VanEck Solana vs. VanEck Global Fallen | VanEck Solana vs. VanEck Oil Services |
Check out your portfolio center.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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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