Correlation Between Kontrol Technologies and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both Kontrol Technologies 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 Kontrol Technologies and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontrol Technologies Corp and Soluna Holdings, you can compare the effects of market volatilities on Kontrol Technologies 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 Kontrol Technologies with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontrol Technologies and Soluna Holdings.
Diversification Opportunities for Kontrol Technologies and Soluna Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kontrol and Soluna is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kontrol Technologies Corp and Soluna Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings and Kontrol Technologies 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 Kontrol Technologies Corp 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 Kontrol Technologies i.e., Kontrol Technologies and Soluna Holdings go up and down completely randomly.
Pair Corralation between Kontrol Technologies and Soluna Holdings
Assuming the 90 days horizon Kontrol Technologies is expected to generate 1.88 times less return on investment than Soluna Holdings. But when comparing it to its historical volatility, Kontrol Technologies Corp is 1.16 times less risky than Soluna Holdings. It trades about 0.02 of its potential returns per unit of risk. Soluna Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 331.00 in Soluna Holdings on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Soluna Holdings or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontrol Technologies Corp vs. Soluna Holdings
Performance |
| Timeline |
| Kontrol Technologies Corp |
| Soluna Holdings |
Kontrol Technologies and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontrol Technologies and Soluna Holdings
The main advantage of trading using opposite Kontrol Technologies and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontrol Technologies 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.| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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