Correlation Between CLPS and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both CLPS and Soluna Holdings 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 CLPS and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLPS Inc and Soluna Holdings, you can compare the effects of market volatilities on CLPS and Soluna Holdings 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 CLPS with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLPS and Soluna Holdings.
Diversification Opportunities for CLPS and Soluna Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CLPS and Soluna is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Soluna Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings and CLPS 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 CLPS Inc are associated (or correlated) with Soluna Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soluna Holdings has no effect on the direction of CLPS i.e., CLPS and Soluna Holdings go up and down completely randomly.
Pair Corralation between CLPS and Soluna Holdings
Given the investment horizon of 90 days CLPS Inc is expected to generate 0.26 times more return on investment than Soluna Holdings. However, CLPS Inc is 3.81 times less risky than Soluna Holdings. It trades about 0.22 of its potential returns per unit of risk. Soluna Holdings is currently generating about -0.14 per unit of risk. If you would invest 121.00 in CLPS Inc on November 18, 2024 and sell it today you would earn a total of 12.00 from holding CLPS Inc or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLPS Inc vs. Soluna Holdings
Performance |
| Timeline |
| CLPS Inc |
| Soluna Holdings |
CLPS and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLPS and Soluna Holdings
The main advantage of trading using opposite CLPS and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLPS position performs unexpectedly, Soluna Holdings 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 Soluna Holdings will offset losses from the drop in Soluna Holdings' long position.The idea behind CLPS Inc and Soluna Holdings 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.| Soluna Holdings vs. CLPS Inc | Soluna Holdings vs. Xalles Holdings | Soluna Holdings vs. SEATech Ventures Corp | Soluna Holdings vs. ASGN Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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