Correlation Between Presidio Property and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both Presidio Property and Soluna Holdings 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 Presidio Property and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and Soluna Holdings Preferred, you can compare the effects of market volatilities on Presidio Property and Soluna Holdings 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 Presidio Property with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and Soluna Holdings.
Diversification Opportunities for Presidio Property and Soluna Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Presidio and Soluna is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust and Soluna Holdings Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings Preferred and Presidio Property 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 Presidio Property Trust are associated (or correlated) with Soluna Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soluna Holdings Preferred has no effect on the direction of Presidio Property i.e., Presidio Property and Soluna Holdings go up and down completely randomly.
Pair Corralation between Presidio Property and Soluna Holdings
Assuming the 90 days horizon Presidio Property is expected to generate 13.57 times less return on investment than Soluna Holdings. But when comparing it to its historical volatility, Presidio Property Trust is 3.95 times less risky than Soluna Holdings. It trades about 0.04 of its potential returns per unit of risk. Soluna Holdings Preferred is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 478.00 in Soluna Holdings Preferred on November 1, 2024 and sell it today you would earn a total of 429.00 from holding Soluna Holdings Preferred or generate 89.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. Soluna Holdings Preferred
Performance |
| Timeline |
| Presidio Property Trust |
| Soluna Holdings Preferred |
Presidio Property and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and Soluna Holdings
The main advantage of trading using opposite Presidio Property and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property position performs unexpectedly, Soluna Holdings 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 Soluna Holdings will offset losses from the drop in Soluna Holdings' long position.| Presidio Property vs. FAT Brands | Presidio Property vs. Atlanticus Holdings Corp | Presidio Property vs. Presidio Property Trust |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |