Correlation Between Cardano and Sayona Mining
Can any of the company-specific risk be diversified away by investing in both Cardano and Sayona Mining 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 Cardano and Sayona Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and Sayona Mining, you can compare the effects of market volatilities on Cardano and Sayona Mining 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 Cardano with a short position of Sayona Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Sayona Mining.
Diversification Opportunities for Cardano and Sayona Mining
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cardano and Sayona is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Sayona Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining and Cardano 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 Cardano are associated (or correlated) with Sayona Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sayona Mining has no effect on the direction of Cardano i.e., Cardano and Sayona Mining go up and down completely randomly.
Pair Corralation between Cardano and Sayona Mining
Assuming the 90 days trading horizon Cardano is expected to generate 1.22 times more return on investment than Sayona Mining. However, Cardano is 1.22 times more volatile than Sayona Mining. It trades about 0.1 of its potential returns per unit of risk. Sayona Mining is currently generating about -0.02 per unit of risk. If you would invest 46.00 in Cardano on October 12, 2024 and sell it today you would earn a total of 45.00 from holding Cardano or generate 97.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.36% |
| Values | Daily Returns |
Cardano vs. Sayona Mining
Performance |
| Timeline |
| Cardano |
| Sayona Mining |
Cardano and Sayona Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and Sayona Mining
The main advantage of trading using opposite Cardano and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, Sayona Mining 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 Sayona Mining will offset losses from the drop in Sayona Mining's long position.The idea behind Cardano and Sayona Mining 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.| Sayona Mining vs. Hutchison Telecommunications | Sayona Mining vs. Ainsworth Game Technology | Sayona Mining vs. ACDC Metals | Sayona Mining vs. Insurance Australia Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |