Correlation Between Polygon Ecosystem and Cosmos
Can any of the company-specific risk be diversified away by investing in both Polygon Ecosystem and Cosmos 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 Polygon Ecosystem and Cosmos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polygon Ecosystem Token and Cosmos, you can compare the effects of market volatilities on Polygon Ecosystem and Cosmos 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 Polygon Ecosystem with a short position of Cosmos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygon Ecosystem and Cosmos.
Diversification Opportunities for Polygon Ecosystem and Cosmos
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Polygon and Cosmos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Polygon Ecosystem Token and Cosmos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos and Polygon Ecosystem 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 Polygon Ecosystem Token are associated (or correlated) with Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos has no effect on the direction of Polygon Ecosystem i.e., Polygon Ecosystem and Cosmos go up and down completely randomly.
Pair Corralation between Polygon Ecosystem and Cosmos
Assuming the 90 days trading horizon Polygon Ecosystem Token is expected to under-perform the Cosmos. But the crypto coin apears to be less risky and, when comparing its historical volatility, Polygon Ecosystem Token is 1.04 times less risky than Cosmos. The crypto coin trades about -0.15 of its potential returns per unit of risk. The Cosmos is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 653.00 in Cosmos on November 1, 2024 and sell it today you would lose (73.00) from holding Cosmos or give up 11.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polygon Ecosystem Token vs. Cosmos
Performance |
| Timeline |
| Polygon Ecosystem Token |
| Cosmos |
Polygon Ecosystem and Cosmos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polygon Ecosystem and Cosmos
The main advantage of trading using opposite Polygon Ecosystem and Cosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon Ecosystem position performs unexpectedly, Cosmos 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 Cosmos will offset losses from the drop in Cosmos' long position.| Polygon Ecosystem vs. Staked Ether | Polygon Ecosystem vs. Phala Network | Polygon Ecosystem vs. EigenLayer | Polygon Ecosystem 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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