Correlation Between Soluna Holdings and VALTECH SE
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and VALTECH SE 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 VALTECH SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings and VALTECH SE, you can compare the effects of market volatilities on Soluna Holdings and VALTECH SE 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 VALTECH SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and VALTECH SE.
Diversification Opportunities for Soluna Holdings and VALTECH SE
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Soluna and VALTECH is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and VALTECH SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VALTECH SE 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 VALTECH SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VALTECH SE has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and VALTECH SE go up and down completely randomly.
Pair Corralation between Soluna Holdings and VALTECH SE
Given the investment horizon of 90 days Soluna Holdings is expected to generate 37.34 times more return on investment than VALTECH SE. However, Soluna Holdings is 37.34 times more volatile than VALTECH SE. It trades about 0.02 of its potential returns per unit of risk. VALTECH SE is currently generating about 0.06 per unit of risk. If you would invest 878.00 in Soluna Holdings on September 1, 2024 and sell it today you would lose (536.00) from holding Soluna Holdings or give up 61.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.81% |
| Values | Daily Returns |
Soluna Holdings vs. VALTECH SE
Performance |
| Timeline |
| Soluna Holdings |
| VALTECH SE |
Soluna Holdings and VALTECH SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and VALTECH SE
The main advantage of trading using opposite Soluna Holdings and VALTECH SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, VALTECH SE 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 VALTECH SE will offset losses from the drop in VALTECH SE's long position.| Soluna Holdings vs. CLPS Inc | Soluna Holdings vs. Xalles Holdings | Soluna Holdings vs. SEATech Ventures Corp | Soluna Holdings vs. ASGN Inc |
| VALTECH SE vs. NFT Limited | VALTECH SE vs. Enlivex Therapeutics | VALTECH SE vs. Wisekey International Holding | VALTECH SE vs. Sphere 3D 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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