Correlation Between Cetus Protocol and DUSK
Can any of the company-specific risk be diversified away by investing in both Cetus Protocol and DUSK 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 Cetus Protocol and DUSK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cetus Protocol and DUSK, you can compare the effects of market volatilities on Cetus Protocol and DUSK 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 Cetus Protocol with a short position of DUSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cetus Protocol and DUSK.
Diversification Opportunities for Cetus Protocol and DUSK
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cetus and DUSK is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cetus Protocol and DUSK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUSK and Cetus Protocol 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 Cetus Protocol are associated (or correlated) with DUSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUSK has no effect on the direction of Cetus Protocol i.e., Cetus Protocol and DUSK go up and down completely randomly.
Pair Corralation between Cetus Protocol and DUSK
Assuming the 90 days trading horizon Cetus Protocol is expected to under-perform the DUSK. In addition to that, Cetus Protocol is 1.52 times more volatile than DUSK. It trades about -0.44 of its total potential returns per unit of risk. DUSK is currently generating about -0.41 per unit of volatility. If you would invest 21.00 in DUSK on November 8, 2024 and sell it today you would lose (10.00) from holding DUSK or give up 47.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cetus Protocol vs. DUSK
Performance |
| Timeline |
| Cetus Protocol |
| DUSK |
Cetus Protocol and DUSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cetus Protocol and DUSK
The main advantage of trading using opposite Cetus Protocol and DUSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cetus Protocol position performs unexpectedly, DUSK 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 DUSK will offset losses from the drop in DUSK's long position.| Cetus Protocol vs. XRP | Cetus Protocol vs. Solana | Cetus Protocol vs. Sui | Cetus Protocol vs. Staked Ether |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |