Correlation Between Cardano and Takkt AG
Can any of the company-specific risk be diversified away by investing in both Cardano and Takkt AG 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 Takkt AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and Takkt AG, you can compare the effects of market volatilities on Cardano and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Takkt AG.
Diversification Opportunities for Cardano and Takkt AG
Excellent diversification
The 3 months correlation between Cardano and Takkt is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of Cardano i.e., Cardano and Takkt AG go up and down completely randomly.
Pair Corralation between Cardano and Takkt AG
Assuming the 90 days trading horizon Cardano is expected to generate 2.97 times more return on investment than Takkt AG. However, Cardano is 2.97 times more volatile than Takkt AG. It trades about 0.19 of its potential returns per unit of risk. Takkt AG is currently generating about -0.09 per unit of risk. If you would invest 32.00 in Cardano on November 2, 2024 and sell it today you would earn a total of 64.00 from holding Cardano or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
Cardano vs. Takkt AG
Performance |
| Timeline |
| Cardano |
| Takkt AG |
Cardano and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and Takkt AG
The main advantage of trading using opposite Cardano and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.The idea behind Cardano and Takkt AG 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.| Takkt AG vs. FUJIFILM Holdings | Takkt AG vs. Takkt AG | Takkt AG vs. Superior Plus Corp | Takkt AG vs. Intel |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |