Correlation Between Chicken Soup and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both Chicken Soup 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 Chicken Soup and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicken Soup For and Soluna Holdings Preferred, you can compare the effects of market volatilities on Chicken Soup 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 Chicken Soup with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicken Soup and Soluna Holdings.
Diversification Opportunities for Chicken Soup and Soluna Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chicken and Soluna is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Chicken Soup For and Soluna Holdings Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings Preferred and Chicken Soup 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 Chicken Soup For 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 Preferred has no effect on the direction of Chicken Soup i.e., Chicken Soup and Soluna Holdings go up and down completely randomly.
Pair Corralation between Chicken Soup and Soluna Holdings
Assuming the 90 days horizon Chicken Soup is expected to generate 4.75 times less return on investment than Soluna Holdings. In addition to that, Chicken Soup is 3.72 times more volatile than Soluna Holdings Preferred. It trades about 0.01 of its total potential returns per unit of risk. Soluna Holdings Preferred is currently generating about 0.1 per unit of volatility. If you would invest 385.00 in Soluna Holdings Preferred on September 2, 2024 and sell it today you would earn a total of 889.00 from holding Soluna Holdings Preferred or generate 230.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 57.66% |
| Values | Daily Returns |
Chicken Soup For vs. Soluna Holdings Preferred
Performance |
| Timeline |
| Chicken Soup For |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Soluna Holdings Preferred |
Chicken Soup and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicken Soup and Soluna Holdings
The main advantage of trading using opposite Chicken Soup and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicken Soup 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.| Chicken Soup vs. AMC Networks | Chicken Soup vs. Lions Gate Entertainment | Chicken Soup vs. Reservoir Media | Chicken Soup vs. Marcus |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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