Correlation Between Solana and WIN

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

Diversification Opportunities for Solana and WIN

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between Solana and WIN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Solana and WIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIN 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 WIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIN has no effect on the direction of Solana i.e., Solana and WIN go up and down completely randomly.

Pair Corralation between Solana and WIN

Assuming the 90 days trading horizon Solana is expected to generate 0.72 times more return on investment than WIN. However, Solana is 1.38 times less risky than WIN. It trades about 0.14 of its potential returns per unit of risk. WIN is currently generating about 0.04 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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Solana  vs.  WIN

 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 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.
WIN 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WIN are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, WIN exhibited solid returns over the last few months and may actually be approaching a breakup point.

Solana and WIN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Solana and WIN

The main advantage of trading using opposite Solana and WIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solana position performs unexpectedly, WIN 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 WIN will offset losses from the drop in WIN's long position.
The idea behind Solana and WIN 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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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