Correlation Between Kamino and Solana
Can any of the company-specific risk be diversified away by investing in both Kamino and Solana 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 Kamino and Solana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamino and Solana, you can compare the effects of market volatilities on Kamino and Solana 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 Kamino with a short position of Solana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamino and Solana.
Diversification Opportunities for Kamino and Solana
Poor diversification
The 3 months correlation between Kamino and Solana is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kamino and Solana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solana and Kamino 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 Kamino are associated (or correlated) with Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solana has no effect on the direction of Kamino i.e., Kamino and Solana go up and down completely randomly.
Pair Corralation between Kamino and Solana
Assuming the 90 days trading horizon Kamino is expected to generate 1.83 times more return on investment than Solana. However, Kamino is 1.83 times more volatile than Solana. It trades about 0.06 of its potential returns per unit of risk. Solana is currently generating about 0.07 per unit of risk. If you would invest 0.00 in Kamino on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Kamino or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 58.17% |
| Values | Daily Returns |
Kamino vs. Solana
Performance |
| Timeline |
| Kamino |
| Solana |
Kamino and Solana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamino and Solana
The main advantage of trading using opposite Kamino and Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamino position performs unexpectedly, Solana 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 Solana will offset losses from the drop in Solana's long position.The idea behind Kamino and Solana 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.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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |