Correlation Between Solana and SingularityNET

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Solana and SingularityNET 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 SingularityNET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solana and SingularityNET, you can compare the effects of market volatilities on Solana and SingularityNET 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 SingularityNET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solana and SingularityNET.

Diversification Opportunities for Solana and SingularityNET

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Solana and SingularityNET is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Solana and SingularityNET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SingularityNET 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 SingularityNET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SingularityNET has no effect on the direction of Solana i.e., Solana and SingularityNET go up and down completely randomly.

Pair Corralation between Solana and SingularityNET

Assuming the 90 days trading horizon Solana is expected to generate 3.25 times less return on investment than SingularityNET. But when comparing it to its historical volatility, Solana is 2.09 times less risky than SingularityNET. It trades about 0.08 of its potential returns per unit of risk. SingularityNET is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3.96  in SingularityNET on July 6, 2022 and sell it today you would earn a total of  0.62  from holding SingularityNET or generate 15.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Solana  vs.  SingularityNET

 Performance (%) 
       Timeline  
Solana 
Solana Performance
0 of 100
Over the last 90 days Solana has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Solana investors.

Solana Price Channel

SingularityNET 
SingularityNET Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in SingularityNET are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, SingularityNET sustained solid returns over the last few months and may actually be approaching a breakup point.

SingularityNET Price Channel

Solana and SingularityNET Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Solana and SingularityNET

The main advantage of trading using opposite Solana and SingularityNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solana position performs unexpectedly, SingularityNET 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 SingularityNET will offset losses from the drop in SingularityNET's long position.
Solana vs. XRP
Solana vs. Polkadot
Solana vs. Chainlink
Solana vs. Polygon
The idea behind Solana and SingularityNET 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.
SingularityNET vs. XRP
SingularityNET vs. Solana
SingularityNET vs. Polkadot
SingularityNET vs. Chainlink
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go