Correlation Between Cetus Protocol and THENA
Can any of the company-specific risk be diversified away by investing in both Cetus Protocol and THENA 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 THENA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cetus Protocol and THENA, you can compare the effects of market volatilities on Cetus Protocol and THENA 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 THENA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cetus Protocol and THENA.
Diversification Opportunities for Cetus Protocol and THENA
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cetus and THENA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cetus Protocol and THENA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THENA 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 THENA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THENA has no effect on the direction of Cetus Protocol i.e., Cetus Protocol and THENA go up and down completely randomly.
Pair Corralation between Cetus Protocol and THENA
Assuming the 90 days trading horizon Cetus Protocol is expected to generate 1.57 times more return on investment than THENA. However, Cetus Protocol is 1.57 times more volatile than THENA. It trades about -0.07 of its potential returns per unit of risk. THENA is currently generating about -0.54 per unit of risk. If you would invest 29.00 in Cetus Protocol on November 1, 2024 and sell it today you would lose (7.00) from holding Cetus Protocol or give up 24.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Cetus Protocol vs. THENA
Performance |
| Timeline |
| Cetus Protocol |
| THENA |
Cetus Protocol and THENA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cetus Protocol and THENA
The main advantage of trading using opposite Cetus Protocol and THENA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cetus Protocol position performs unexpectedly, THENA 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 THENA will offset losses from the drop in THENA's long position.| Cetus Protocol vs. XRP | Cetus Protocol vs. Solana | Cetus Protocol vs. Sui | Cetus Protocol vs. OFFICIAL TRUMP |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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