Correlation Between Solana and CONSOLIDATED
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By analyzing existing cross correlation between Solana and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Solana and CONSOLIDATED 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 CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solana and CONSOLIDATED.
Diversification Opportunities for Solana and CONSOLIDATED
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Solana and CONSOLIDATED is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Solana and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Solana i.e., Solana and CONSOLIDATED go up and down completely randomly.
Pair Corralation between Solana and CONSOLIDATED
Assuming the 90 days trading horizon Solana is expected to generate 3.68 times more return on investment than CONSOLIDATED. However, Solana is 3.68 times more volatile than CONSOLIDATED EDISON N. It trades about 0.17 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.19 per unit of risk. If you would invest 14,866 in Solana on June 12, 2025 and sell it today you would earn a total of 7,578 from holding Solana or generate 50.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.38% |
| Values | Daily Returns |
Solana vs. CONSOLIDATED EDISON N
Performance |
| Timeline |
| Solana |
| CONSOLIDATED EDISON |
Solana and CONSOLIDATED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solana and CONSOLIDATED
The main advantage of trading using opposite Solana and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solana position performs unexpectedly, CONSOLIDATED 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 CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.The idea behind Solana and CONSOLIDATED EDISON N 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.| CONSOLIDATED vs. DiamondRock Hospitality | CONSOLIDATED vs. Braemar Hotels Resorts | CONSOLIDATED vs. Pebblebrook Hotel Trust | CONSOLIDATED vs. Park Hotels Resorts |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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