Correlation Between Soluna Holdings and Ontrak

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

By analyzing existing cross correlation between Soluna Holdings and Ontrak Inc, you can compare the effects of market volatilities on Soluna Holdings and Ontrak 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 Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and Ontrak.

Diversification Opportunities for Soluna Holdings and Ontrak

0.01

Correlation Coefficient

Soluna Holdings  Ontrak

Significant diversification

The 3 months correlation between Soluna and Ontrak is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak 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 are associated (or correlated) with Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of Soluna Holdings i.e., Soluna Holdings and Ontrak go up and down completely randomly.

Pair Corralation between Soluna Holdings and Ontrak

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 Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Soluna Holdings  vs.  Ontrak Inc

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.

Ontrak Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Soluna Holdings and Ontrak

The main advantage of trading using opposite Soluna Holdings and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak's long position.

The idea behind Soluna Holdings and Ontrak 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..