Correlation Between Soluna Holdings and Lytus Technologies
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and Lytus Technologies 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 Lytus Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings Preferred and Lytus Technologies Holdings, you can compare the effects of market volatilities on Soluna Holdings and Lytus Technologies 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 Lytus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and Lytus Technologies.
Diversification Opportunities for Soluna Holdings and Lytus Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soluna and Lytus is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings Preferred and Lytus Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lytus Technologies 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 Preferred are associated (or correlated) with Lytus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lytus Technologies has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and Lytus Technologies go up and down completely randomly.
Pair Corralation between Soluna Holdings and Lytus Technologies
Assuming the 90 days horizon Soluna Holdings Preferred is expected to generate 1.09 times more return on investment than Lytus Technologies. However, Soluna Holdings is 1.09 times more volatile than Lytus Technologies Holdings. It trades about 0.18 of its potential returns per unit of risk. Lytus Technologies Holdings is currently generating about -0.04 per unit of risk. If you would invest 283.00 in Soluna Holdings Preferred on August 28, 2024 and sell it today you would earn a total of 837.00 from holding Soluna Holdings Preferred or generate 295.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soluna Holdings Preferred vs. Lytus Technologies Holdings
Performance |
| Timeline |
| Soluna Holdings Preferred |
| Lytus Technologies |
Soluna Holdings and Lytus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and Lytus Technologies
The main advantage of trading using opposite Soluna Holdings and Lytus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, Lytus Technologies 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 Lytus Technologies will offset losses from the drop in Lytus Technologies' long position.| Soluna Holdings vs. Soluna Holdings | Soluna Holdings vs. Presidio Property Trust | Soluna Holdings vs. Aquagold International | Soluna Holdings vs. Morningstar Unconstrained Allocation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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