Correlation Between EMERCOIN and Litecoin
Specify exactly 2 symbols:
By analyzing existing cross correlation between EMERCOIN and Litecoin, you can compare the effects of market volatilities on EMERCOIN and Litecoin 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 EMERCOIN with a short position of Litecoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMERCOIN and Litecoin.
Diversification Opportunities for EMERCOIN and Litecoin
Weak diversification
The 3 months correlation between EMERCOIN and Litecoin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding EMERCOIN and Litecoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litecoin and EMERCOIN 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 EMERCOIN are associated (or correlated) with Litecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litecoin has no effect on the direction of EMERCOIN i.e., EMERCOIN and Litecoin go up and down completely randomly.
Pair Corralation between EMERCOIN and Litecoin
Assuming the 90 days trading horizon EMERCOIN is expected to generate 17.83 times more return on investment than Litecoin. However, EMERCOIN is 17.83 times more volatile than Litecoin. It trades about 0.08 of its potential returns per unit of risk. Litecoin is currently generating about 0.04 per unit of risk. If you would invest 0.00 in EMERCOIN on September 3, 2024 and sell it today you would earn a total of 1.47 from holding EMERCOIN or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 57.72% |
| Values | Daily Returns |
EMERCOIN vs. Litecoin
Performance |
| Timeline |
| EMERCOIN |
| Litecoin |
EMERCOIN and Litecoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMERCOIN and Litecoin
The main advantage of trading using opposite EMERCOIN and Litecoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMERCOIN position performs unexpectedly, Litecoin 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 Litecoin will offset losses from the drop in Litecoin's long position.The idea behind EMERCOIN and Litecoin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |