Correlation Between Soluna Holdings and SASI Old
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and SASI Old 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 SASI Old 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 SASI Old, you can compare the effects of market volatilities on Soluna Holdings and SASI Old 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 SASI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and SASI Old.
Diversification Opportunities for Soluna Holdings and SASI Old
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soluna and SASI is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings Preferred and SASI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASI Old 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 SASI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASI Old has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and SASI Old go up and down completely randomly.
Pair Corralation between Soluna Holdings and SASI Old
Assuming the 90 days horizon Soluna Holdings Preferred is expected to generate 1.09 times more return on investment than SASI Old. However, Soluna Holdings is 1.09 times more volatile than SASI Old. It trades about 0.06 of its potential returns per unit of risk. SASI Old is currently generating about -0.08 per unit of risk. If you would invest 377.00 in Soluna Holdings Preferred on October 20, 2024 and sell it today you would earn a total of 621.00 from holding Soluna Holdings Preferred or generate 164.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.65% |
| Values | Daily Returns |
Soluna Holdings Preferred vs. SASI Old
Performance |
| Timeline |
| Soluna Holdings Preferred |
| SASI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Soluna Holdings and SASI Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and SASI Old
The main advantage of trading using opposite Soluna Holdings and SASI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, SASI Old 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 SASI Old will offset losses from the drop in SASI Old's long position.The idea behind Soluna Holdings Preferred and SASI Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SASI Old vs. Flint Telecom Group | SASI Old vs. Castellum | SASI Old vs. Datametrex AI Limited | SASI Old vs. TTEC Holdings |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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