Correlation Between Maverick Protocol and CMT
Can any of the company-specific risk be diversified away by investing in both Maverick Protocol and CMT 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 Maverick Protocol and CMT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maverick Protocol and CMT, you can compare the effects of market volatilities on Maverick Protocol and CMT 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 Maverick Protocol with a short position of CMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maverick Protocol and CMT.
Diversification Opportunities for Maverick Protocol and CMT
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maverick and CMT is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Maverick Protocol and CMT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMT and Maverick Protocol 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 Maverick Protocol are associated (or correlated) with CMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMT has no effect on the direction of Maverick Protocol i.e., Maverick Protocol and CMT go up and down completely randomly.
Pair Corralation between Maverick Protocol and CMT
Assuming the 90 days trading horizon Maverick Protocol is expected to under-perform the CMT. In addition to that, Maverick Protocol is 3.23 times more volatile than CMT. It trades about -0.48 of its total potential returns per unit of risk. CMT is currently generating about -0.02 per unit of volatility. If you would invest 0.78 in CMT on November 7, 2024 and sell it today you would lose (0.01) from holding CMT or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maverick Protocol vs. CMT
Performance |
| Timeline |
| Maverick Protocol |
| CMT |
Maverick Protocol and CMT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maverick Protocol and CMT
The main advantage of trading using opposite Maverick Protocol and CMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maverick Protocol position performs unexpectedly, CMT 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 CMT will offset losses from the drop in CMT's long position.| Maverick Protocol vs. Staked Ether | Maverick Protocol vs. Phala Network | Maverick Protocol vs. EigenLayer | Maverick Protocol 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |