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
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Conflux and Arweave is 0.93. 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 0.63 times more return on investment than Arweave. However, Conflux Network is 1.59 times less risky than Arweave. It trades about 0.03 of its potential returns per unit of risk. Arweave is currently generating about 0.01 per unit of risk. If you would invest 16.00 in Conflux Network on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Conflux Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| 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. Staked Ether | Conflux Network vs. Phala Network | Conflux Network vs. EigenLayer | Conflux Network vs. EOSDAC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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