Correlation Between VanEck Solana and VanEck Semiconductor

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

Diversification Opportunities for VanEck Solana and VanEck Semiconductor

0.82

Correlation Coefficient

VanEck Solana  VanEck Semiconductor

Very poor diversification

The 3 months correlation between VanEck and VanEck is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Solana ETN and VanEck Semiconductor UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Semiconductor 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 Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Semiconductor has no effect on the direction of VanEck Solana i.e., VanEck Solana and VanEck Semiconductor go up and down completely randomly.

Pair Corralation between VanEck Solana and VanEck Semiconductor

Assuming the 90 days trading horizon VanEck Solana ETN is expected to under-perform the VanEck Semiconductor. In addition to that, VanEck Solana is 3.25 times more volatile than VanEck Semiconductor UCITS. It trades about -0.04 of its total potential returns per unit of risk. VanEck Semiconductor UCITS is currently generating about -0.07 per unit of volatility. If you would invest  3,730  in VanEck Semiconductor UCITS on December 28, 2024 and sell it today you would lose (430.00) from holding VanEck Semiconductor UCITS or give up 11.53% of portfolio value over 90 days.

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

VanEck Solana ETN  vs.  VanEck Semiconductor UCITS

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 weak performance in the last few months, the Etf's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

VanEck Semiconductor

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck Semiconductor UCITS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Pair Trading with VanEck Solana and VanEck Semiconductor

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

The idea behind VanEck Solana ETN and VanEck Semiconductor 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..