Correlation Between Conflux Network and ZCash
Can any of the company-specific risk be diversified away by investing in both Conflux Network and ZCash 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 ZCash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conflux Network and ZCash, you can compare the effects of market volatilities on Conflux Network and ZCash 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 ZCash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conflux Network and ZCash.
Diversification Opportunities for Conflux Network and ZCash
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Conflux and ZCash is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Conflux Network and ZCash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZCash 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 ZCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZCash has no effect on the direction of Conflux Network i.e., Conflux Network and ZCash go up and down completely randomly.
Pair Corralation between Conflux Network and ZCash
Assuming the 90 days trading horizon Conflux Network is expected to generate 1.29 times more return on investment than ZCash. However, Conflux Network is 1.29 times more volatile than ZCash. It trades about -0.19 of its potential returns per unit of risk. ZCash is currently generating about -0.37 per unit of risk. If you would invest 17.00 in Conflux Network on November 18, 2024 and sell it today you would lose (5.00) from holding Conflux Network or give up 29.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conflux Network vs. ZCash
Performance |
| Timeline |
| Conflux Network |
| ZCash |
Conflux Network and ZCash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conflux Network and ZCash
The main advantage of trading using opposite Conflux Network and ZCash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conflux Network position performs unexpectedly, ZCash 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 ZCash will offset losses from the drop in ZCash'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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