Correlation Between CoinShares International and Duni AB
Can any of the company-specific risk be diversified away by investing in both CoinShares International and Duni AB 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 CoinShares International and Duni AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoinShares International and Duni AB, you can compare the effects of market volatilities on CoinShares International and Duni AB 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 CoinShares International with a short position of Duni AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoinShares International and Duni AB.
Diversification Opportunities for CoinShares International and Duni AB
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CoinShares and Duni is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CoinShares International and Duni AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duni AB and CoinShares International 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 CoinShares International are associated (or correlated) with Duni AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duni AB has no effect on the direction of CoinShares International i.e., CoinShares International and Duni AB go up and down completely randomly.
Pair Corralation between CoinShares International and Duni AB
Assuming the 90 days horizon CoinShares International is expected to generate 5.29 times more return on investment than Duni AB. However, CoinShares International is 5.29 times more volatile than Duni AB. It trades about 0.5 of its potential returns per unit of risk. Duni AB is currently generating about -0.26 per unit of risk. If you would invest 5,030 in CoinShares International on September 2, 2024 and sell it today you would earn a total of 3,450 from holding CoinShares International or generate 68.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoinShares International vs. Duni AB
Performance |
| Timeline |
| CoinShares International |
| Duni AB |
CoinShares International and Duni AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoinShares International and Duni AB
The main advantage of trading using opposite CoinShares International and Duni AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoinShares International position performs unexpectedly, Duni AB 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 Duni AB will offset losses from the drop in Duni AB's long position.| CoinShares International vs. Cint Group AB | CoinShares International vs. Bonesupport Holding AB | CoinShares International vs. Catena Media plc | CoinShares International vs. Hexatronic Group AB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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