Move Parallels to External SSD

I am running Parallels (18.1.1) on an M1 Mac Mini running Ventura 13.0, and with Windows 10 running under Parallels.
I have purchased a Satechi SSD enclosure and 1 TB SSD to add to the Mac Mini as I am running out of HDD space inside the Mac Mini.
With this I am thinking of having Parallels run entirely on the Satechi SSD so I can expand space available considerably from what I currently have setup (The .PVM file is 47 GB).

1. Can I "move" my existing setup of Parallels / Windows in a simple way ?
2. Or, do I ned to create a new installation (assuming this possible) on the Satechi SSD, install Windows on that ?

I am probably a little confused on my thinking as most of the space is taken up by data which I can access from Mac OS or Windows (eg Excel files) and so maybe I will not gain the space I think maybe I will, although some of those files could also get placed on the Satechi SSD as well.

Appreciate both thoughts on this, and guide as to how I should/could do this.

 

However, those that have Thunderbolt 3 enclosures with nVME SSD setups should get pretty decent performance. With the correct nVME SSD drive, I've seen performance metrics that match the internal SSD performance of the M1 Mac Mini.

 

How to run a virtual machine from network or external mass storage
https://kb.parallels.com/en/122874