Correlation Between WonderFi Technologies and CurrentC Power
Can any of the company-specific risk be diversified away by investing in both WonderFi Technologies and CurrentC Power 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 WonderFi Technologies and CurrentC Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WonderFi Technologies and CurrentC Power, you can compare the effects of market volatilities on WonderFi Technologies and CurrentC Power 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 WonderFi Technologies with a short position of CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of WonderFi Technologies and CurrentC Power.
Diversification Opportunities for WonderFi Technologies and CurrentC Power
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WonderFi and CurrentC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding WonderFi Technologies and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power and WonderFi Technologies 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 WonderFi Technologies are associated (or correlated) with CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of WonderFi Technologies i.e., WonderFi Technologies and CurrentC Power go up and down completely randomly.
Pair Corralation between WonderFi Technologies and CurrentC Power
Assuming the 90 days horizon WonderFi Technologies is expected to generate 13.89 times less return on investment than CurrentC Power. But when comparing it to its historical volatility, WonderFi Technologies is 5.82 times less risky than CurrentC Power. It trades about 0.04 of its potential returns per unit of risk. CurrentC Power is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20.00 in CurrentC Power on August 31, 2024 and sell it today you would lose (8.00) from holding CurrentC Power or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
WonderFi Technologies vs. CurrentC Power
Performance |
| Timeline |
| WonderFi Technologies |
| CurrentC Power |
WonderFi Technologies and CurrentC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WonderFi Technologies and CurrentC Power
The main advantage of trading using opposite WonderFi Technologies and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WonderFi Technologies position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.| WonderFi Technologies vs. SoundHound AI | WonderFi Technologies vs. Shopify | WonderFi Technologies vs. C3 Ai Inc | WonderFi Technologies vs. Bubblr Inc |
| CurrentC Power vs. Marti Technologies | CurrentC Power vs. Minerals Technologies | CurrentC Power vs. Western Digital | CurrentC Power vs. Tyson Foods |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |