Correlation Between Solana and Moo Deng

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

Diversification Opportunities for Solana and Moo Deng

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Solana and Moo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Solana and Moo Deng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moo Deng 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 Moo Deng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moo Deng has no effect on the direction of Solana i.e., Solana and Moo Deng go up and down completely randomly.

Pair Corralation between Solana and Moo Deng

Assuming the 90 days trading horizon Solana is expected to generate 13.93 times less return on investment than Moo Deng. But when comparing it to its historical volatility, Solana is 6.79 times less risky than Moo Deng. It trades about 0.09 of its potential returns per unit of risk. Moo Deng is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3.54  in Moo Deng on April 20, 2025 and sell it today you would earn a total of  15.46  from holding Moo Deng or generate 436.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Solana  vs.  Moo Deng

 Performance 
       Timeline  
Solana 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Solana are ranked lower than 7 (%) 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.
Moo Deng 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Moo Deng are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Moo Deng reported solid returns over the last few months and may actually be approaching a breakup point.

Solana and Moo Deng Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Solana and Moo Deng

The main advantage of trading using opposite Solana and Moo Deng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solana position performs unexpectedly, Moo Deng 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 Moo Deng will offset losses from the drop in Moo Deng's long position.
The idea behind Solana and Moo Deng 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
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
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets