Correlation Between Soluna Holdings and Veea
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings and Veea 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 Veea 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 Veea Inc, you can compare the effects of market volatilities on Soluna Holdings and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and Veea.
Diversification Opportunities for Soluna Holdings and Veea
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soluna and Veea is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings Preferred and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and Veea go up and down completely randomly.
Pair Corralation between Soluna Holdings and Veea
Assuming the 90 days horizon Soluna Holdings Preferred is expected to generate 0.93 times more return on investment than Veea. However, Soluna Holdings Preferred is 1.08 times less risky than Veea. It trades about -0.08 of its potential returns per unit of risk. Veea Inc is currently generating about -0.23 per unit of risk. If you would invest 1,300 in Soluna Holdings Preferred on August 29, 2024 and sell it today you would lose (171.00) from holding Soluna Holdings Preferred or give up 13.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soluna Holdings Preferred vs. Veea Inc
Performance |
| Timeline |
| Soluna Holdings Preferred |
| Veea Inc |
Soluna Holdings and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and Veea
The main advantage of trading using opposite Soluna Holdings and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea's 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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