Correlation Between VanEck Solana and VanEck Vectors

Can any of the company-specific risk be diversified away by investing in both VanEck Solana and VanEck Vectors 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 Vectors 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 Vectors UCITS, you can compare the effects of market volatilities on VanEck Solana and VanEck Vectors 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 Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Solana and VanEck Vectors.

Diversification Opportunities for VanEck Solana and VanEck Vectors

0.49

Correlation Coefficient

VanEck Solana  VanEck Vectors

Very weak diversification

The 3 months correlation between VanEck and VanEck is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Solana ETN and VanEck Vectors UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors UCITS 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 Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors UCITS has no effect on the direction of VanEck Solana i.e., VanEck Solana and VanEck Vectors go up and down completely randomly.

Pair Corralation between VanEck Solana and VanEck Vectors

Assuming the 90 days trading horizon VanEck Solana ETN is expected to generate 9.9 times more return on investment than VanEck Vectors. However, VanEck Solana is 9.9 times more volatile than VanEck Vectors UCITS. It trades about 0.38 of its potential returns per unit of risk. VanEck Vectors UCITS is currently generating about 0.08 per unit of risk. If you would invest  949.00  in VanEck Solana ETN on October 26, 2024 and sell it today you would earn a total of  370.00  from holding VanEck Solana ETN or generate 38.99% return on investment over 90 days.

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

VanEck Solana ETN  vs.  VanEck Vectors UCITS

VanEck Solana ETN

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Solana ETN are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, VanEck Solana exhibited solid returns over the last few months and may actually be approaching a breakup point.

VanEck Vectors UCITS

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Vectors UCITS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, VanEck Vectors is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VanEck Solana and VanEck Vectors

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

The idea behind VanEck Solana ETN and VanEck Vectors UCITS 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.