Correlation Between WisdomTree Ethereum and 21Shares Solana
Can any of the company-specific risk be diversified away by investing in both WisdomTree Ethereum and 21Shares 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 WisdomTree Ethereum and 21Shares Solana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Ethereum ETC and 21Shares Solana staking, you can compare the effects of market volatilities on WisdomTree Ethereum and 21Shares 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 WisdomTree Ethereum with a short position of 21Shares Solana. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Ethereum and 21Shares Solana.
Diversification Opportunities for WisdomTree Ethereum and 21Shares Solana
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and 21Shares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Ethereum ETC and 21Shares Solana staking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Solana staking and WisdomTree Ethereum 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 WisdomTree Ethereum ETC are associated (or correlated) with 21Shares Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Solana staking has no effect on the direction of WisdomTree Ethereum i.e., WisdomTree Ethereum and 21Shares Solana go up and down completely randomly.
Pair Corralation between WisdomTree Ethereum and 21Shares Solana
Assuming the 90 days trading horizon WisdomTree Ethereum ETC is expected to generate 0.99 times more return on investment than 21Shares Solana. However, WisdomTree Ethereum ETC is 1.01 times less risky than 21Shares Solana. It trades about -0.22 of its potential returns per unit of risk. 21Shares Solana staking is currently generating about -0.22 per unit of risk. If you would invest 2,796 in WisdomTree Ethereum ETC on November 8, 2025 and sell it today you would lose (1,279) from holding WisdomTree Ethereum ETC or give up 45.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Ethereum ETC vs. 21Shares Solana staking
Performance |
| Timeline |
| WisdomTree Ethereum ETC |
| 21Shares Solana staking |
WisdomTree Ethereum and 21Shares Solana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Ethereum and 21Shares Solana
The main advantage of trading using opposite WisdomTree Ethereum and 21Shares Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Ethereum position performs unexpectedly, 21Shares 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 21Shares Solana will offset losses from the drop in 21Shares Solana's long position.| WisdomTree Ethereum vs. SPDR MSCI Europe | WisdomTree Ethereum vs. iShares Swiss Domestic | WisdomTree Ethereum vs. iShares MSCI Japan | WisdomTree Ethereum vs. iShares Corp Bond |
| 21Shares Solana vs. SPDR MSCI Europe | 21Shares Solana vs. iShares Swiss Domestic | 21Shares Solana vs. WisdomTree Ethereum ETC | 21Shares Solana vs. iShares MSCI Japan |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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