Correlation Between Polygon Ecosystem and Swell Network
Can any of the company-specific risk be diversified away by investing in both Polygon Ecosystem and Swell 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 Polygon Ecosystem and Swell Network 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 Swell Network, you can compare the effects of market volatilities on Polygon Ecosystem and Swell 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 Polygon Ecosystem with a short position of Swell Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygon Ecosystem and Swell Network.
Diversification Opportunities for Polygon Ecosystem and Swell Network
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polygon and Swell is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Polygon Ecosystem Token and Swell Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swell Network 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 Swell Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swell Network has no effect on the direction of Polygon Ecosystem i.e., Polygon Ecosystem and Swell Network go up and down completely randomly.
Pair Corralation between Polygon Ecosystem and Swell Network
Assuming the 90 days trading horizon Polygon Ecosystem Token is expected to generate 0.78 times more return on investment than Swell Network. However, Polygon Ecosystem Token is 1.28 times less risky than Swell Network. It trades about -0.31 of its potential returns per unit of risk. Swell Network is currently generating about -0.51 per unit of risk. If you would invest 46.00 in Polygon Ecosystem Token on November 8, 2024 and sell it today you would lose (16.00) from holding Polygon Ecosystem Token or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polygon Ecosystem Token vs. Swell Network
Performance |
| Timeline |
| Polygon Ecosystem Token |
| Swell Network |
Polygon Ecosystem and Swell Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polygon Ecosystem and Swell Network
The main advantage of trading using opposite Polygon Ecosystem and Swell Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon Ecosystem position performs unexpectedly, Swell 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 Swell Network will offset losses from the drop in Swell Network's 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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