Correlation Between Phala Network and Magic Internet
Can any of the company-specific risk be diversified away by investing in both Phala Network and Magic Internet 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 Magic Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phala Network and Magic Internet Money, you can compare the effects of market volatilities on Phala Network and Magic Internet 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 Magic Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phala Network and Magic Internet.
Diversification Opportunities for Phala Network and Magic Internet
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phala and Magic is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Phala Network and Magic Internet Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Internet Money 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 Magic Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Internet Money has no effect on the direction of Phala Network i.e., Phala Network and Magic Internet go up and down completely randomly.
Pair Corralation between Phala Network and Magic Internet
Assuming the 90 days trading horizon Phala Network is expected to under-perform the Magic Internet. In addition to that, Phala Network is 12.91 times more volatile than Magic Internet Money. It trades about -0.16 of its total potential returns per unit of risk. Magic Internet Money is currently generating about 0.21 per unit of volatility. If you would invest 96.00 in Magic Internet Money on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Magic Internet Money or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phala Network vs. Magic Internet Money
Performance |
| Timeline |
| Phala Network |
| Magic Internet Money |
Phala Network and Magic Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phala Network and Magic Internet
The main advantage of trading using opposite Phala Network and Magic Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phala Network position performs unexpectedly, Magic Internet 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 Magic Internet will offset losses from the drop in Magic Internet's long position.| Phala Network vs. Staked Ether | Phala Network vs. EigenLayer | Phala Network vs. EOSDAC | Phala Network vs. BLZ |
| Magic Internet vs. XRP | Magic Internet vs. Solana | Magic Internet vs. Sui | Magic Internet vs. Staked Ether |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |