Correlation Between Creditcoin and SYS
Can any of the company-specific risk be diversified away by investing in both Creditcoin and SYS 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 Creditcoin and SYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creditcoin and SYS, you can compare the effects of market volatilities on Creditcoin and SYS 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 Creditcoin with a short position of SYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditcoin and SYS.
Diversification Opportunities for Creditcoin and SYS
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Creditcoin and SYS is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Creditcoin and SYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYS and Creditcoin 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 Creditcoin are associated (or correlated) with SYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYS has no effect on the direction of Creditcoin i.e., Creditcoin and SYS go up and down completely randomly.
Pair Corralation between Creditcoin and SYS
Assuming the 90 days trading horizon Creditcoin is expected to generate 0.44 times more return on investment than SYS. However, Creditcoin is 2.28 times less risky than SYS. It trades about -0.43 of its potential returns per unit of risk. SYS is currently generating about -0.27 per unit of risk. If you would invest 94.00 in Creditcoin on December 1, 2024 and sell it today you would lose (23.00) from holding Creditcoin or give up 24.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditcoin vs. SYS
Performance |
| Timeline |
| Creditcoin |
| SYS |
Creditcoin and SYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditcoin and SYS
The main advantage of trading using opposite Creditcoin and SYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditcoin position performs unexpectedly, SYS 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 SYS will offset losses from the drop in SYS's long position.| Creditcoin vs. Staked Ether | Creditcoin vs. Phala Network | Creditcoin vs. EigenLayer | Creditcoin 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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