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
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soluna and Veea is -0.22. 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 0.51 times more return on investment than Veea. However, Soluna Holdings Preferred is 1.96 times less risky than Veea. It trades about 0.05 of its potential returns per unit of risk. Veea Inc is currently generating about -0.04 per unit of risk. If you would invest 350.00 in Soluna Holdings Preferred on November 27, 2024 and sell it today you would earn a total of 261.00 from holding Soluna Holdings Preferred or generate 74.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.72% |
| 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.The idea behind Soluna Holdings Preferred and Veea Inc 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.| Veea vs. Lindblad Expeditions Holdings | Veea vs. Ihuman Inc | Veea vs. Sunlands Technology Group | Veea vs. Cirrus Logic |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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