Correlation Between VanEck Solana and Sygnum Platform
Can any of the company-specific risk be diversified away by investing in both VanEck Solana and Sygnum Platform 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 Sygnum Platform 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 Sygnum Platform Winners, you can compare the effects of market volatilities on VanEck Solana and Sygnum Platform 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 Sygnum Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Solana and Sygnum Platform.
Diversification Opportunities for VanEck Solana and Sygnum Platform
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VanEck and Sygnum is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Solana ETN and Sygnum Platform Winners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sygnum Platform Winners 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 Sygnum Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sygnum Platform Winners has no effect on the direction of VanEck Solana i.e., VanEck Solana and Sygnum Platform go up and down completely randomly.
Pair Corralation between VanEck Solana and Sygnum Platform
Assuming the 90 days trading horizon VanEck Solana ETN is expected to generate 1.33 times more return on investment than Sygnum Platform. However, VanEck Solana is 1.33 times more volatile than Sygnum Platform Winners. It trades about 0.08 of its potential returns per unit of risk. Sygnum Platform Winners is currently generating about 0.05 per unit of risk. If you would invest 512.00 in VanEck Solana ETN on November 8, 2024 and sell it today you would earn a total of 489.00 from holding VanEck Solana ETN or generate 95.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Solana ETN vs. Sygnum Platform Winners
Performance |
| Timeline |
| VanEck Solana ETN |
| Sygnum Platform Winners |
VanEck Solana and Sygnum Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Solana and Sygnum Platform
The main advantage of trading using opposite VanEck Solana and Sygnum Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Solana position performs unexpectedly, Sygnum Platform 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 Sygnum Platform will offset losses from the drop in Sygnum Platform's long position.| VanEck Solana vs. VanEck Sustainable World | VanEck Solana vs. VanEck iBoxx EUR | VanEck Solana vs. VanEck Global Fallen | VanEck Solana vs. VanEck Oil Services |
| Sygnum Platform vs. UBSFund Solutions MSCI | Sygnum Platform vs. Vanguard SP 500 | Sygnum Platform vs. iShares VII PLC | Sygnum Platform vs. iShares Core SP |
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 CEOs Directory module to screen CEOs from public companies around the world.
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