Correlation Between 1inch and Solana

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Can any of the company-specific risk be diversified away by investing in both 1inch and Solana 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 1inch and Solana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1inch and Solana, you can compare the effects of market volatilities on 1inch and Solana 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 1inch with a short position of Solana. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1inch and Solana.

Diversification Opportunities for 1inch and Solana

  Correlation Coefficient

Very poor diversification

The 3 months correlation between 1inch and Solana is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 1inch and Solana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solana and 1inch 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 1inch are associated (or correlated) with Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solana has no effect on the direction of 1inch i.e., 1inch and Solana go up and down completely randomly.

Pair Corralation between 1inch and Solana

Assuming the 90 days trading horizon 1inch is expected to under-perform the Solana. But the crypto coin apears to be less risky and, when comparing its historical volatility, 1inch is 6.86 times less risky than Solana. The crypto coin trades about 0.0 of its potential returns per unit of risk. The Solana is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,846  in Solana on March 27, 2024 and sell it today you would earn a total of  9,520  from holding Solana or generate 247.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

1inch  vs.  Solana


Risk-Adjusted Performance

0 of 100

Very Weak
Over the last 90 days 1inch has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, 1inch is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Risk-Adjusted Performance

0 of 100

Very Weak
Over the last 90 days Solana has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's essential indicators remain rather sound which may send shares a bit higher in July 2024. The latest tumult may also be a sign of longer-term up-swing for Solana shareholders.

1inch and Solana Volatility Contrast

   Predicted Return Density   

Pair Trading with 1inch and Solana

The main advantage of trading using opposite 1inch and Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1inch position performs unexpectedly, Solana 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 Solana will offset losses from the drop in Solana's long position.
The idea behind 1inch and Solana 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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