Correlation Between NewWave Silver and NewWave EUR
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By analyzing existing cross correlation between NewWave Silver Exchange and NewWave EUR Currency, you can compare the effects of market volatilities on NewWave Silver and NewWave EUR 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 NewWave Silver with a short position of NewWave EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewWave Silver and NewWave EUR.
Diversification Opportunities for NewWave Silver and NewWave EUR
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NewWave and NewWave is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding NewWave Silver Exchange and NewWave EUR Currency in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewWave EUR Currency and NewWave Silver 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 NewWave Silver Exchange are associated (or correlated) with NewWave EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewWave EUR Currency has no effect on the direction of NewWave Silver i.e., NewWave Silver and NewWave EUR go up and down completely randomly.
Pair Corralation between NewWave Silver and NewWave EUR
Assuming the 90 days trading horizon NewWave Silver Exchange is expected to generate 2.22 times more return on investment than NewWave EUR. However, NewWave Silver is 2.22 times more volatile than NewWave EUR Currency. It trades about 0.09 of its potential returns per unit of risk. NewWave EUR Currency is currently generating about -0.06 per unit of risk. If you would invest 48,400 in NewWave Silver Exchange on September 2, 2024 and sell it today you would earn a total of 4,100 from holding NewWave Silver Exchange or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
NewWave Silver Exchange vs. NewWave EUR Currency
Performance |
| Timeline |
| NewWave Silver Exchange |
| NewWave EUR Currency |
NewWave Silver and NewWave EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewWave Silver and NewWave EUR
The main advantage of trading using opposite NewWave Silver and NewWave EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewWave Silver position performs unexpectedly, NewWave EUR 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 NewWave EUR will offset losses from the drop in NewWave EUR's long position.| NewWave Silver vs. NewWave Platinum Exchange | NewWave Silver vs. NewWave USD Currency | NewWave Silver vs. NewWave EUR Currency | NewWave Silver vs. NewWave GBP Currency |
| NewWave EUR vs. Europa Metals | NewWave EUR vs. JSE Limited | NewWave EUR vs. British American Tobacco | NewWave EUR vs. Kap Industrial Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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