Correlation Between Solana and Power Integrations
Can any of the company-specific risk be diversified away by investing in both Solana and Power Integrations 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 Solana and Power Integrations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solana and Power Integrations, you can compare the effects of market volatilities on Solana and Power Integrations 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 Solana with a short position of Power Integrations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solana and Power Integrations.
Diversification Opportunities for Solana and Power Integrations
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Solana and Power is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Solana and Power Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Integrations and Solana 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 Solana are associated (or correlated) with Power Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Integrations has no effect on the direction of Solana i.e., Solana and Power Integrations go up and down completely randomly.
Pair Corralation between Solana and Power Integrations
Assuming the 90 days trading horizon Solana is expected to generate 1.25 times more return on investment than Power Integrations. However, Solana is 1.25 times more volatile than Power Integrations. It trades about 0.11 of its potential returns per unit of risk. Power Integrations is currently generating about 0.12 per unit of risk. If you would invest 13,405 in Solana on April 17, 2025 and sell it today you would earn a total of 2,998 from holding Solana or generate 22.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Solana vs. Power Integrations
Performance |
| Timeline |
| Solana |
| Power Integrations |
Solana and Power Integrations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solana and Power Integrations
The main advantage of trading using opposite Solana and Power Integrations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solana position performs unexpectedly, Power Integrations 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 Power Integrations will offset losses from the drop in Power Integrations' long position.The idea behind Solana and Power Integrations 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.| Power Integrations vs. Diodes Incorporated | Power Integrations vs. MACOM Technology Solutions | Power Integrations vs. Cirrus Logic | Power Integrations vs. Amkor Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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