Correlation Between Conflux Network and Arweave
Can any of the company-specific risk be diversified away by investing in both Conflux Network and Arweave 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 Conflux Network and Arweave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conflux Network and Arweave, you can compare the effects of market volatilities on Conflux Network and Arweave 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 Conflux Network with a short position of Arweave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conflux Network and Arweave.
Diversification Opportunities for Conflux Network and Arweave
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Conflux and Arweave is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Conflux Network and Arweave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arweave and Conflux Network 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 Conflux Network are associated (or correlated) with Arweave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arweave has no effect on the direction of Conflux Network i.e., Conflux Network and Arweave go up and down completely randomly.
Pair Corralation between Conflux Network and Arweave
Assuming the 90 days trading horizon Conflux Network is expected to generate 1.1 times more return on investment than Arweave. However, Conflux Network is 1.1 times more volatile than Arweave. It trades about 0.01 of its potential returns per unit of risk. Arweave is currently generating about -0.04 per unit of risk. If you would invest 22.00 in Conflux Network on August 27, 2024 and sell it today you would lose (4.00) from holding Conflux Network or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conflux Network vs. Arweave
Performance |
| Timeline |
| Conflux Network |
| Arweave |
Conflux Network and Arweave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conflux Network and Arweave
The main advantage of trading using opposite Conflux Network and Arweave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conflux Network position performs unexpectedly, Arweave 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 Arweave will offset losses from the drop in Arweave's long position.| Conflux Network vs. Bitcoin | Conflux Network vs. Dogecoin | Conflux Network vs. Bitcoin Cash | Conflux Network vs. Litecoin |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |