Correlation Between Conflux Network and NLG
Can any of the company-specific risk be diversified away by investing in both Conflux Network and NLG 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 NLG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conflux Network and NLG, you can compare the effects of market volatilities on Conflux Network and NLG 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 NLG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conflux Network and NLG.
Diversification Opportunities for Conflux Network and NLG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Conflux and NLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Conflux Network and NLG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NLG 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 NLG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NLG has no effect on the direction of Conflux Network i.e., Conflux Network and NLG go up and down completely randomly.
Pair Corralation between Conflux Network and NLG
If you would invest 15.00 in Conflux Network on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Conflux Network or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Conflux Network vs. NLG
Performance |
| Timeline |
| Conflux Network |
| NLG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Conflux Network and NLG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conflux Network and NLG
The main advantage of trading using opposite Conflux Network and NLG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conflux Network position performs unexpectedly, NLG 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 NLG will offset losses from the drop in NLG's long position.| Conflux Network vs. Staked Ether | Conflux Network vs. EigenLayer | Conflux Network vs. EOSDAC | Conflux Network vs. BLZ |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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