Correlation Between Chia and VanEck Solana

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

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

Diversification Opportunities for Chia and VanEck Solana

0.49

Correlation Coefficient

Chia  VanEck Solana

Very weak diversification

The 3 months correlation between Chia and VanEck is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chia 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 Chia 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 Chia 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 Chia i.e., Chia and VanEck Solana go up and down completely randomly.

Pair Corralation between Chia and VanEck Solana

Assuming the 90 days trading horizon Chia is expected to under-perform the VanEck Solana. In addition to that, Chia is 1.02 times more volatile than VanEck Solana ETN. It trades about -0.12 of its total potential returns per unit of risk. VanEck Solana ETN is currently generating about -0.05 per unit of volatility. If you would invest  978.00  in VanEck Solana ETN on December 21, 2024 and sell it today you would lose (248.00) from holding VanEck Solana ETN or give up 25.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Chia  vs.  VanEck Solana ETN

Chia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Chia shareholders.

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.

Pair Trading with Chia and VanEck Solana

The main advantage of trading using opposite Chia and VanEck Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia 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.

The idea behind Chia and VanEck Solana ETN 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.