Correlation Between Fat Projects and Blockchain Moon
Can any of the company-specific risk be diversified away by investing in both Fat Projects and Blockchain Moon 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 Fat Projects and Blockchain Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fat Projects Acquisition and Blockchain Moon Acquisition, you can compare the effects of market volatilities on Fat Projects and Blockchain Moon 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 Fat Projects with a short position of Blockchain Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fat Projects and Blockchain Moon.
Diversification Opportunities for Fat Projects and Blockchain Moon
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fat and Blockchain is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fat Projects Acquisition and Blockchain Moon Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Moon Acqu and Fat Projects 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 Fat Projects Acquisition are associated (or correlated) with Blockchain Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Moon Acqu has no effect on the direction of Fat Projects i.e., Fat Projects and Blockchain Moon go up and down completely randomly.
Pair Corralation between Fat Projects and Blockchain Moon
If you would invest 0.20 in Blockchain Moon Acquisition on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Blockchain Moon Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fat Projects Acquisition vs. Blockchain Moon Acquisition
Performance |
| Timeline |
| Fat Projects Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blockchain Moon Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fat Projects and Blockchain Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fat Projects and Blockchain Moon
The main advantage of trading using opposite Fat Projects and Blockchain Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fat Projects position performs unexpectedly, Blockchain Moon 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 Blockchain Moon will offset losses from the drop in Blockchain Moon's long position.The idea behind Fat Projects Acquisition and Blockchain Moon Acquisition 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.| Blockchain Moon vs. BioNTech SE | Blockchain Moon vs. KeyCorp | Blockchain Moon vs. Pintec Technology Holdings | Blockchain Moon vs. Abcellera Biologics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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