Correlation Between Information Services and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both Information Services 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 Information Services and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information Services Group and Soluna Holdings, you can compare the effects of market volatilities on Information Services 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 Information Services with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information Services and Soluna Holdings.
Diversification Opportunities for Information Services and Soluna Holdings
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Information and Soluna is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Information Services Group and Soluna Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings and Information Services 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 Information Services Group 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 Information Services i.e., Information Services and Soluna Holdings go up and down completely randomly.
Pair Corralation between Information Services and Soluna Holdings
Considering the 90-day investment horizon Information Services Group is expected to generate 0.25 times more return on investment than Soluna Holdings. However, Information Services Group is 4.06 times less risky than Soluna Holdings. It trades about 0.2 of its potential returns per unit of risk. Soluna Holdings is currently generating about -0.04 per unit of risk. If you would invest 307.00 in Information Services Group on August 24, 2024 and sell it today you would earn a total of 27.00 from holding Information Services Group or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information Services Group vs. Soluna Holdings
Performance |
| Timeline |
| Information Services |
| Soluna Holdings |
Information Services and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information Services and Soluna Holdings
The main advantage of trading using opposite Information Services and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information Services 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.| Information Services vs. Formula Systems 1985 | Information Services vs. CSP Inc | Information Services vs. Nayax | Information Services vs. The Hackett Group |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |