Correlation Between VanEck Solana and VanEck Multi

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

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

Diversification Opportunities for VanEck Solana and VanEck Multi

0.19

Correlation Coefficient

VanEck Solana  VanEck Multi

Average diversification

The 3 months correlation between VanEck and VanEck is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Solana ETN and VanEck Multi Asset Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Multi Asset and VanEck Solana 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 Solana ETN are associated (or correlated) with VanEck Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Multi Asset has no effect on the direction of VanEck Solana i.e., VanEck Solana and VanEck Multi go up and down completely randomly.

Pair Corralation between VanEck Solana and VanEck Multi

Assuming the 90 days trading horizon VanEck Solana ETN is expected to under-perform the VanEck Multi. In addition to that, VanEck Solana is 10.56 times more volatile than VanEck Multi Asset Growth. It trades about -0.06 of its total potential returns per unit of risk. VanEck Multi Asset Growth is currently generating about 0.01 per unit of volatility. If you would invest  8,128  in VanEck Multi Asset Growth on December 21, 2024 and sell it today you would earn a total of  14.00  from holding VanEck Multi Asset Growth or generate 0.17% return on investment over 90 days.

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

VanEck Solana ETN  vs.  VanEck Multi Asset Growth

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.

VanEck Multi Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Multi Asset Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, VanEck Multi is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VanEck Solana and VanEck Multi

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

The idea behind VanEck Solana ETN and VanEck Multi Asset Growth 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.