Correlation Between Polygon Ecosystem and GRIN
Can any of the company-specific risk be diversified away by investing in both Polygon Ecosystem and GRIN 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 GRIN 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 GRIN, you can compare the effects of market volatilities on Polygon Ecosystem and GRIN 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 GRIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygon Ecosystem and GRIN.
Diversification Opportunities for Polygon Ecosystem and GRIN
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Polygon and GRIN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Polygon Ecosystem Token and GRIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIN 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 GRIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIN has no effect on the direction of Polygon Ecosystem i.e., Polygon Ecosystem and GRIN go up and down completely randomly.
Pair Corralation between Polygon Ecosystem and GRIN
Assuming the 90 days trading horizon Polygon Ecosystem Token is expected to generate 1.19 times more return on investment than GRIN. However, Polygon Ecosystem is 1.19 times more volatile than GRIN. It trades about 0.18 of its potential returns per unit of risk. GRIN is currently generating about 0.16 per unit of risk. If you would invest 36.00 in Polygon Ecosystem Token on August 23, 2024 and sell it today you would earn a total of 8.00 from holding Polygon Ecosystem Token or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Polygon Ecosystem Token vs. GRIN
Performance |
| Timeline |
| Polygon Ecosystem Token |
| GRIN |
Polygon Ecosystem and GRIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polygon Ecosystem and GRIN
The main advantage of trading using opposite Polygon Ecosystem and GRIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon Ecosystem position performs unexpectedly, GRIN 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 GRIN will offset losses from the drop in GRIN's long position.| Polygon Ecosystem vs. Solana | Polygon Ecosystem vs. XRP | Polygon Ecosystem vs. Sui | Polygon Ecosystem 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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