Correlation Between Neonode and Soluna Holdings

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

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

Diversification Opportunities for Neonode and Soluna Holdings

-0.72

Correlation Coefficient

Neonode  Soluna Holdings

Pay attention - limited upside

The 3 months correlation between Neonode and Soluna is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Neonode and Soluna Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings and Neonode 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 Neonode are associated (or correlated) with Soluna Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soluna Holdings has no effect on the direction of Neonode i.e., Neonode and Soluna Holdings go up and down completely randomly.

Pair Corralation between Neonode and Soluna Holdings

Given the investment horizon of 90 days Neonode is expected to under-perform the Soluna Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Neonode is 1.78 times less risky than Soluna Holdings. The stock trades about -0.21 of its potential returns per unit of risk. The Soluna Holdings is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  47.00  in Soluna Holdings on August 5, 2025 and sell it today you would earn a total of  302.00  from holding Soluna Holdings or generate 642.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Neonode  vs.  Soluna Holdings

Neonode

Risk-Adjusted Performance

Weakest

Over the last 90 days Neonode has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Soluna Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Soluna Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Soluna Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neonode and Soluna Holdings

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

The idea behind Neonode and Soluna Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.