Correlation Between Matas AS and Soluna Holdings

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

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

Diversification Opportunities for Matas AS and Soluna Holdings

0.3

Correlation Coefficient

Matas AS  Soluna Holdings

Weak diversification

The 3 months correlation between Matas and Soluna is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Matas AS and Soluna Holdings Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings Preferred and Matas AS 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 Matas AS 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 Preferred has no effect on the direction of Matas AS i.e., Matas AS and Soluna Holdings go up and down completely randomly.

Pair Corralation between Matas AS and Soluna Holdings

Assuming the 90 days trading horizon Matas AS is expected to under-perform the Soluna Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Matas AS is 5.1 times less risky than Soluna Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The Soluna Holdings Preferred is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  352.00  in Soluna Holdings Preferred on May 18, 2025 and sell it today you would lose (27.00) from holding Soluna Holdings Preferred or give up 7.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Matas AS  vs.  Soluna Holdings Preferred

Matas AS

Risk-Adjusted Performance

Weakest

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

Soluna Holdings Preferred

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Soluna Holdings Preferred are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent technical indicators, Soluna Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Matas AS and Soluna Holdings

The main advantage of trading using opposite Matas AS and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matas AS 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 Matas AS and Soluna Holdings Preferred 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.