Correlation Between CSE Global and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both CSE Global 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 CSE Global and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSE Global Limited and Soluna Holdings Preferred, you can compare the effects of market volatilities on CSE Global 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 CSE Global with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSE Global and Soluna Holdings.
Diversification Opportunities for CSE Global and Soluna Holdings
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSE and Soluna is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CSE Global Limited 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 CSE Global 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 CSE Global Limited 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 CSE Global i.e., CSE Global and Soluna Holdings go up and down completely randomly.
Pair Corralation between CSE Global and Soluna Holdings
Assuming the 90 days horizon CSE Global is expected to generate 3.8 times less return on investment than Soluna Holdings. But when comparing it to its historical volatility, CSE Global Limited is 1.53 times less risky than Soluna Holdings. It trades about 0.03 of its potential returns per unit of risk. Soluna Holdings Preferred is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Soluna Holdings Preferred on November 5, 2024 and sell it today you would earn a total of 665.00 from holding Soluna Holdings Preferred or generate 272.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.59% |
| Values | Daily Returns |
CSE Global Limited vs. Soluna Holdings Preferred
Performance |
| Timeline |
| CSE Global Limited |
| Soluna Holdings Preferred |
CSE Global and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSE Global and Soluna Holdings
The main advantage of trading using opposite CSE Global and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSE Global 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.| CSE Global vs. Appen Limited | CSE Global vs. Appen Limited | CSE Global vs. Deveron Corp | CSE Global vs. Capgemini SE ADR |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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