Correlation Between Quisitive Technology and Soluna Holdings

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

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

Diversification Opportunities for Quisitive Technology and Soluna Holdings

-0.41

Correlation Coefficient

Quisitive Technology  Soluna Holdings

Very good diversification

The 3 months correlation between Quisitive and Soluna is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Quisitive Technology Solutions 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 Quisitive Technology 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 Quisitive Technology Solutions 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 Quisitive Technology i.e., Quisitive Technology and Soluna Holdings go up and down completely randomly.

Pair Corralation between Quisitive Technology and Soluna Holdings

Assuming the 90 days horizon Quisitive Technology Solutions is expected to generate 0.7 times more return on investment than Soluna Holdings. However, Quisitive Technology Solutions is 1.43 times less risky than Soluna Holdings. It trades about -0.03 of its potential returns per unit of risk. Soluna Holdings Preferred is currently generating about -0.25 per unit of risk. If you would invest  25.00  in Quisitive Technology Solutions on September 23, 2024 and sell it today you would lose (1.00) from holding Quisitive Technology Solutions or give up 4.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Quisitive Technology Solutions  vs.  Soluna Holdings Preferred

Quisitive Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quisitive Technology Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Soluna Holdings Preferred

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Soluna Holdings Preferred are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent technical indicators, Soluna Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quisitive Technology and Soluna Holdings

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

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.