Correlation Between Soluna Holdings and Information Services
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and Information Services 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 Information Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings and Information Services Group, you can compare the effects of market volatilities on Soluna Holdings and Information Services 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 Information Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and Information Services.
Diversification Opportunities for Soluna Holdings and Information Services
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Soluna and Information is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and Information Services Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services 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 Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and Information Services go up and down completely randomly.
Pair Corralation between Soluna Holdings and Information Services
Given the investment horizon of 90 days Soluna Holdings is expected to under-perform the Information Services. In addition to that, Soluna Holdings is 3.51 times more volatile than Information Services Group. It trades about -0.12 of its total potential returns per unit of risk. Information Services Group is currently generating about 0.27 per unit of volatility. If you would invest 316.00 in Information Services Group on August 28, 2024 and sell it today you would earn a total of 41.00 from holding Information Services Group or generate 12.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soluna Holdings vs. Information Services Group
Performance |
| Timeline |
| Soluna Holdings |
| Information Services |
Soluna Holdings and Information Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and Information Services
The main advantage of trading using opposite Soluna Holdings and Information Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, Information Services 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 Information Services will offset losses from the drop in Information Services' long position.| Soluna Holdings vs. CLPS Inc | Soluna Holdings vs. Xalles Holdings | Soluna Holdings vs. SEATech Ventures Corp | Soluna Holdings vs. ASGN Inc |
| Information Services vs. Formula Systems 1985 | Information Services vs. CSP Inc | Information Services vs. Nayax | Information Services vs. The Hackett Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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