Correlation Between Cetus Protocol and REDLANG
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By analyzing existing cross correlation between Cetus Protocol and REDLANG, you can compare the effects of market volatilities on Cetus Protocol and REDLANG 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 REDLANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cetus Protocol and REDLANG.
Diversification Opportunities for Cetus Protocol and REDLANG
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cetus and REDLANG is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cetus Protocol and REDLANG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDLANG 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 REDLANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDLANG has no effect on the direction of Cetus Protocol i.e., Cetus Protocol and REDLANG go up and down completely randomly.
Pair Corralation between Cetus Protocol and REDLANG
Assuming the 90 days trading horizon Cetus Protocol is expected to under-perform the REDLANG. But the crypto coin apears to be less risky and, when comparing its historical volatility, Cetus Protocol is 1.04 times less risky than REDLANG. The crypto coin trades about -0.44 of its potential returns per unit of risk. The REDLANG is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 0.13 in REDLANG on November 8, 2024 and sell it today you would lose (0.04) from holding REDLANG or give up 34.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cetus Protocol vs. REDLANG
Performance |
| Timeline |
| Cetus Protocol |
| REDLANG |
Cetus Protocol and REDLANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cetus Protocol and REDLANG
The main advantage of trading using opposite Cetus Protocol and REDLANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cetus Protocol position performs unexpectedly, REDLANG 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 REDLANG will offset losses from the drop in REDLANG'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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