Correlation Between Nervos Network and Conflux Network
Can any of the company-specific risk be diversified away by investing in both Nervos Network and Conflux Network 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 Nervos Network and Conflux Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nervos Network and Conflux Network, you can compare the effects of market volatilities on Nervos Network and Conflux Network 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 Nervos Network with a short position of Conflux Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nervos Network and Conflux Network.
Diversification Opportunities for Nervos Network and Conflux Network
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nervos and Conflux is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nervos Network and Conflux Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conflux Network and Nervos 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 Nervos Network are associated (or correlated) with Conflux Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conflux Network has no effect on the direction of Nervos Network i.e., Nervos Network and Conflux Network go up and down completely randomly.
Pair Corralation between Nervos Network and Conflux Network
Assuming the 90 days trading horizon Nervos Network is expected to generate 2.52 times less return on investment than Conflux Network. But when comparing it to its historical volatility, Nervos Network is 1.45 times less risky than Conflux Network. It trades about 0.07 of its potential returns per unit of risk. Conflux Network is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Conflux Network on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Conflux Network or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nervos Network vs. Conflux Network
Performance |
| Timeline |
| Nervos Network |
| Conflux Network |
Nervos Network and Conflux Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nervos Network and Conflux Network
The main advantage of trading using opposite Nervos Network and Conflux Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nervos Network position performs unexpectedly, Conflux Network 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 Conflux Network will offset losses from the drop in Conflux Network's long position.| Nervos Network vs. Bitcoin | Nervos Network vs. Dogecoin | Nervos Network vs. Bitcoin Cash | Nervos Network vs. Litecoin |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |