Correlation Between Solana and Apple

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

By analyzing existing cross correlation between Solana and Apple Inc, you can compare the effects of market volatilities on Solana and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solana and Apple.

Diversification Opportunities for Solana and Apple

0.51

Correlation Coefficient

Solana  Apple

Very weak diversification

The 3 months correlation between Solana and Apple is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Solana and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Solana i.e., Solana and Apple go up and down completely randomly.

Pair Corralation between Solana and Apple

Assuming the 90 days trading horizon Solana is expected to generate 2.38 times more return on investment than Apple. However, Solana is 2.38 times more volatile than Apple Inc. It trades about 0.14 of its potential returns per unit of risk. Apple Inc is currently generating about 0.0 per unit of risk. If you would invest  15,092  in Solana on April 24, 2025 and sell it today you would earn a total of  5,330  from holding Solana or generate 35.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Solana  vs.  Apple Inc

Solana

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Solana are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, Solana exhibited solid returns over the last few months and may actually be approaching a breakup point.

Apple Inc

Risk-Adjusted Performance

Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Apple is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Solana and Apple

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

The idea behind Solana and Apple Inc 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 the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.