Correlation Between Soluna Holdings and Castellum
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and Castellum 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 Soluna Holdings and Castellum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings and Castellum, you can compare the effects of market volatilities on Soluna Holdings and Castellum 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 Soluna Holdings with a short position of Castellum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and Castellum.
Diversification Opportunities for Soluna Holdings and Castellum
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soluna and Castellum is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum and Soluna Holdings 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 Soluna Holdings are associated (or correlated) with Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and Castellum go up and down completely randomly.
Pair Corralation between Soluna Holdings and Castellum
Given the investment horizon of 90 days Soluna Holdings is expected to under-perform the Castellum. In addition to that, Soluna Holdings is 1.11 times more volatile than Castellum. It trades about -0.04 of its total potential returns per unit of risk. Castellum is currently generating about 0.0 per unit of volatility. If you would invest 17.00 in Castellum on August 24, 2024 and sell it today you would lose (0.96) from holding Castellum or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soluna Holdings vs. Castellum
Performance |
| Timeline |
| Soluna Holdings |
| Castellum |
Soluna Holdings and Castellum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and Castellum
The main advantage of trading using opposite Soluna Holdings and Castellum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, Castellum 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 Castellum will offset losses from the drop in Castellum's long position.| Soluna Holdings vs. WNS Holdings | Soluna Holdings vs. CLARIVATE PLC | Soluna Holdings vs. Gartner | Soluna Holdings vs. Broadridge Financial Solutions |
| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |