Correlation Between VanEck Solana and IShares MSCI

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

Diversification Opportunities for VanEck Solana and IShares MSCI

-0.74

Correlation Coefficient

VanEck Solana  IShares MSCI

Pay attention - limited upside

The 3 months correlation between VanEck and IShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Solana ETN and iShares MSCI EM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI EM 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI EM has no effect on the direction of VanEck Solana i.e., VanEck Solana and IShares MSCI go up and down completely randomly.

Pair Corralation between VanEck Solana and IShares MSCI

Assuming the 90 days trading horizon VanEck Solana ETN is expected to generate 5.06 times more return on investment than IShares MSCI. However, VanEck Solana is 5.06 times more volatile than iShares MSCI EM. It trades about 0.1 of its potential returns per unit of risk. iShares MSCI EM is currently generating about -0.17 per unit of risk. If you would invest  795.00  in VanEck Solana ETN on September 24, 2024 and sell it today you would earn a total of  232.00  from holding VanEck Solana ETN or generate 29.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.92%
Values	Daily Returns

VanEck Solana ETN  vs.  iShares MSCI EM

VanEck Solana ETN

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Solana ETN are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, VanEck Solana unveiled solid returns over the last few months and may actually be approaching a breakup point.

iShares MSCI EM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares MSCI EM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with VanEck Solana and IShares MSCI

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

The idea behind VanEck Solana ETN and iShares MSCI EM 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.