Correlation Between VanEck Solana and VanEck Smart

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

Diversification Opportunities for VanEck Solana and VanEck Smart

0.91

Correlation Coefficient

VanEck Solana  VanEck Smart

Almost no diversification

The 3 months correlation between VanEck and VanEck is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Solana ETN and VanEck Smart Contract in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Smart Contract 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 Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Smart Contract has no effect on the direction of VanEck Solana i.e., VanEck Solana and VanEck Smart go up and down completely randomly.

Pair Corralation between VanEck Solana and VanEck Smart

Assuming the 90 days trading horizon VanEck Solana is expected to generate 1.45 times less return on investment than VanEck Smart. In addition to that, VanEck Solana is 1.09 times more volatile than VanEck Smart Contract. It trades about 0.1 of its total potential returns per unit of risk. VanEck Smart Contract is currently generating about 0.15 per unit of volatility. If you would invest  768.00  in VanEck Smart Contract on September 28, 2024 and sell it today you would earn a total of  354.00  from holding VanEck Smart Contract or generate 46.09% return on investment over 90 days.

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

VanEck Solana ETN  vs.  VanEck Smart Contract

VanEck Solana ETN

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Solana ETN are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, VanEck Solana exhibited solid returns over the last few months and may actually be approaching a breakup point.

VanEck Smart Contract

Risk-Adjusted Performance

12 of 100

Good

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

Pair Trading with VanEck Solana and VanEck Smart

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

The idea behind VanEck Solana ETN and VanEck Smart Contract 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.