Correlation Between Solana and Story

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

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

Diversification Opportunities for Solana and Story

0.0

Correlation Coefficient

Solana  Story

Pay attention - limited upside

The 3 months correlation between Solana and Story is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solana and Story in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Story 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 Story. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Story has no effect on the direction of Solana i.e., Solana and Story go up and down completely randomly.

Pair Corralation between Solana and Story

If you would invest  15,259  in Solana on April 23, 2025 and sell it today you would earn a total of  5,163  from holding Solana or generate 33.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Solana  vs.  Story

Solana

Risk-Adjusted Performance

Modest

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.

Story

Risk-Adjusted Performance

OK

Over the last 90 days Story has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Story is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Solana and Story

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

The idea behind Solana and Story 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.