Correlation Between Harbor Custom and Soluna Holdings

Can any of the company-specific risk be diversified away by investing in both Harbor Custom 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 Harbor Custom and Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harbor Custom Development and Soluna Holdings, you can compare the effects of market volatilities on Harbor Custom 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 Harbor Custom with a short position of Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Custom and Soluna Holdings.

Diversification Opportunities for Harbor Custom and Soluna Holdings

-0.06

Correlation Coefficient

Harbor Custom  Soluna Holdings

Good diversification

The 3 months correlation between Harbor and Soluna is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Custom Development and Soluna Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings and Harbor Custom 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 Harbor Custom Development 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 has no effect on the direction of Harbor Custom i.e., Harbor Custom and Soluna Holdings go up and down completely randomly.

Pair Corralation between Harbor Custom and Soluna Holdings

If you would invest  341.00  in Soluna Holdings on August 31, 2024 and sell it today you would lose (18.00) from holding Soluna Holdings or give up 5.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Harbor Custom Development  vs.  Soluna Holdings

Harbor Custom Development

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harbor Custom Development has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Harbor Custom is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Soluna Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Soluna Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Soluna Holdings may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Harbor Custom and Soluna Holdings

The main advantage of trading using opposite Harbor Custom and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Custom 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.

The idea behind Harbor Custom Development and Soluna Holdings 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.