Correlation Between Soluna Holdings and Presidio Property
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and Presidio Property 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 Presidio Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings and Presidio Property Trust, you can compare the effects of market volatilities on Soluna Holdings and Presidio Property 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 Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and Presidio Property.
Diversification Opportunities for Soluna Holdings and Presidio Property
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soluna and Presidio is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and Presidio Property go up and down completely randomly.
Pair Corralation between Soluna Holdings and Presidio Property
Given the investment horizon of 90 days Soluna Holdings is expected to under-perform the Presidio Property. In addition to that, Soluna Holdings is 4.78 times more volatile than Presidio Property Trust. It trades about -0.01 of its total potential returns per unit of risk. Presidio Property Trust is currently generating about -0.02 per unit of volatility. If you would invest 1,489 in Presidio Property Trust on August 30, 2024 and sell it today you would lose (39.00) from holding Presidio Property Trust or give up 2.62% 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. Presidio Property Trust
Performance |
| Timeline |
| Soluna Holdings |
| Presidio Property Trust |
Soluna Holdings and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and Presidio Property
The main advantage of trading using opposite Soluna Holdings and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property's long position.| Soluna Holdings vs. CLPS Inc | Soluna Holdings vs. Xalles Holdings | Soluna Holdings vs. SEATech Ventures Corp | Soluna Holdings vs. ASGN Inc |
| Presidio Property vs. FAT Brands | Presidio Property vs. Atlanticus Holdings Corp | Presidio Property vs. Presidio Property Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |