Correlation Between Magic Internet and Phala Network
Can any of the company-specific risk be diversified away by investing in both Magic Internet and Phala Network 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 Magic Internet and Phala Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magic Internet Money and Phala Network, you can compare the effects of market volatilities on Magic Internet and Phala Network 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 Magic Internet with a short position of Phala Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Internet and Phala Network.
Diversification Opportunities for Magic Internet and Phala Network
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Magic and Phala is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Magic Internet Money and Phala Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phala Network and Magic Internet 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 Magic Internet Money are associated (or correlated) with Phala Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phala Network has no effect on the direction of Magic Internet i.e., Magic Internet and Phala Network go up and down completely randomly.
Pair Corralation between Magic Internet and Phala Network
If you would invest 20.00 in Phala Network on October 24, 2024 and sell it today you would earn a total of 7.00 from holding Phala Network or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magic Internet Money vs. Phala Network
Performance |
| Timeline |
| Magic Internet Money |
| Phala Network |
Magic Internet and Phala Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Internet and Phala Network
The main advantage of trading using opposite Magic Internet and Phala Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Internet position performs unexpectedly, Phala Network 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 Phala Network will offset losses from the drop in Phala Network's long position.| Magic Internet vs. XRP | Magic Internet vs. Solana | Magic Internet vs. Sui | Magic Internet vs. Staked Ether |
| Phala Network vs. Staked Ether | Phala Network vs. EigenLayer | Phala Network vs. EOSDAC | Phala Network vs. BLZ |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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