Correlation Between Chainlink and Solana

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

Diversification Opportunities for Chainlink and Solana

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Chainlink and Solana is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and Solana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solana and Chainlink 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 Chainlink are associated (or correlated) with Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solana has no effect on the direction of Chainlink i.e., Chainlink and Solana go up and down completely randomly.

Pair Corralation between Chainlink and Solana

Assuming the 90 days trading horizon Chainlink is expected to generate 0.81 times more return on investment than Solana. However, Chainlink is 1.24 times less risky than Solana. It trades about 0.29 of its potential returns per unit of risk. Solana is currently generating about 0.19 per unit of risk. If you would invest  594.00  in Chainlink on May 11, 2022 and sell it today you would earn a total of  186.00  from holding Chainlink or generate 31.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Chainlink  vs.  Solana

 Performance (%) 
       Timeline  
Chainlink 
Chainlink Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Chainlink sustained solid returns over the last few months and may actually be approaching a breakup point.

Chainlink Price Channel

Solana 
Solana Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Solana are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Solana may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Solana Price Channel

Chainlink and Solana Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chainlink and Solana

The main advantage of trading using opposite Chainlink and Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainlink position performs unexpectedly, Solana 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 Solana will offset losses from the drop in Solana's long position.
The idea behind Chainlink and Solana 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
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
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go