Correlation Between Soluna Holdings and NFT
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and NFT 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 NFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings and NFT Limited, you can compare the effects of market volatilities on Soluna Holdings and NFT 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 NFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and NFT.
Diversification Opportunities for Soluna Holdings and NFT
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Soluna and NFT is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and NFT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFT Limited 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 NFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFT Limited has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and NFT go up and down completely randomly.
Pair Corralation between Soluna Holdings and NFT
Given the investment horizon of 90 days Soluna Holdings is expected to generate 1.04 times more return on investment than NFT. However, Soluna Holdings is 1.04 times more volatile than NFT Limited. It trades about -0.02 of its potential returns per unit of risk. NFT Limited is currently generating about -0.09 per unit of risk. If you would invest 218.00 in Soluna Holdings on November 2, 2024 and sell it today you would lose (24.00) from holding Soluna Holdings or give up 11.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soluna Holdings vs. NFT Limited
Performance |
| Timeline |
| Soluna Holdings |
| NFT Limited |
Soluna Holdings and NFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and NFT
The main advantage of trading using opposite Soluna Holdings and NFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, NFT 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 NFT will offset losses from the drop in NFT's long position.| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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