Correlation Between Nayax and Soluna Holdings

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

Diversification Opportunities for Nayax and Soluna Holdings

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Nayax and Soluna is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nayax 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 Nayax 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 Nayax 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 Nayax i.e., Nayax and Soluna Holdings go up and down completely randomly.

Pair Corralation between Nayax and Soluna Holdings

Given the investment horizon of 90 days Nayax is expected to generate 2.46 times less return on investment than Soluna Holdings. But when comparing it to its historical volatility, Nayax is 3.68 times less risky than Soluna Holdings. It trades about 0.05 of its potential returns per unit of risk. Soluna Holdings Preferred is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  415.00  in Soluna Holdings Preferred on May 5, 2025 and sell it today you would lose (29.00) from holding Soluna Holdings Preferred or give up 6.99% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nayax  vs.  Soluna Holdings Preferred

 Performance 
       Timeline  
Nayax 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nayax are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Nayax may actually be approaching a critical reversion point that can send shares even higher in September 2025.
Soluna Holdings Preferred 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
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.

Nayax and Soluna Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nayax and Soluna Holdings

The main advantage of trading using opposite Nayax and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax 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 Nayax 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.
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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