Correlation Between Phala Network and Hivemapper
Can any of the company-specific risk be diversified away by investing in both Phala Network and Hivemapper 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 Hivemapper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phala Network and Hivemapper, you can compare the effects of market volatilities on Phala Network and Hivemapper 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 Hivemapper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phala Network and Hivemapper.
Diversification Opportunities for Phala Network and Hivemapper
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Phala and Hivemapper is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Phala Network and Hivemapper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hivemapper 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 Hivemapper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hivemapper has no effect on the direction of Phala Network i.e., Phala Network and Hivemapper go up and down completely randomly.
Pair Corralation between Phala Network and Hivemapper
Assuming the 90 days trading horizon Phala Network is expected to generate 2.0 times more return on investment than Hivemapper. However, Phala Network is 2.0 times more volatile than Hivemapper. It trades about -0.17 of its potential returns per unit of risk. Hivemapper is currently generating about -0.41 per unit of risk. If you would invest 31.00 in Phala Network on November 7, 2024 and sell it today you would lose (13.00) from holding Phala Network or give up 41.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Phala Network vs. Hivemapper
Performance |
| Timeline |
| Phala Network |
| Hivemapper |
Phala Network and Hivemapper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phala Network and Hivemapper
The main advantage of trading using opposite Phala Network and Hivemapper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phala Network position performs unexpectedly, Hivemapper 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 Hivemapper will offset losses from the drop in Hivemapper's long position.| Phala Network vs. Staked Ether | Phala Network vs. EigenLayer | Phala Network vs. EOSDAC | Phala Network vs. BLZ |
| Hivemapper vs. Staked Ether | Hivemapper vs. Phala Network | Hivemapper vs. EigenLayer | Hivemapper 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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