Correlation Between Phala Network and Conflux Network
Can any of the company-specific risk be diversified away by investing in both Phala Network and Conflux 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 Phala Network and Conflux Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phala Network and Conflux Network, you can compare the effects of market volatilities on Phala Network and Conflux 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 Phala Network with a short position of Conflux Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phala Network and Conflux Network.
Diversification Opportunities for Phala Network and Conflux Network
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Phala and Conflux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Phala Network and Conflux Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conflux Network and Phala Network 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 Phala Network are associated (or correlated) with Conflux Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conflux Network has no effect on the direction of Phala Network i.e., Phala Network and Conflux Network go up and down completely randomly.
Pair Corralation between Phala Network and Conflux Network
Assuming the 90 days trading horizon Phala Network is expected to under-perform the Conflux Network. In addition to that, Phala Network is 1.54 times more volatile than Conflux Network. It trades about -0.23 of its total potential returns per unit of risk. Conflux Network is currently generating about -0.16 per unit of volatility. If you would invest 15.00 in Conflux Network on November 9, 2024 and sell it today you would lose (4.00) from holding Conflux Network or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phala Network vs. Conflux Network
Performance |
| Timeline |
| Phala Network |
| Conflux Network |
Phala Network and Conflux Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phala Network and Conflux Network
The main advantage of trading using opposite Phala Network and Conflux Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phala Network position performs unexpectedly, Conflux 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 Conflux Network will offset losses from the drop in Conflux Network's long position.| Phala Network vs. Staked Ether | Phala Network vs. EigenLayer | Phala Network vs. EOSDAC | Phala Network vs. BLZ |
| Conflux Network vs. Staked Ether | Conflux Network vs. Phala Network | Conflux Network vs. EigenLayer | Conflux Network 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |