Correlation Between Cardano and APL

Can any of the company-specific risk be diversified away by investing in both Cardano and APL 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 Cardano and APL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cardano and APL, you can compare the effects of market volatilities on Cardano and APL 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 Cardano with a short position of APL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and APL.

Diversification Opportunities for Cardano and APL

0.39

Correlation Coefficient

Cardano  APL

Weak diversification

The 3 months correlation between Cardano and APL is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and APL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APL and Cardano 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 Cardano are associated (or correlated) with APL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APL has no effect on the direction of Cardano i.e., Cardano and APL go up and down completely randomly.

Pair Corralation between Cardano and APL

If you would invest  70.00  in Cardano on April 22, 2025 and sell it today you would earn a total of  13.00  from holding Cardano or generate 18.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	3.08%
Values	Daily Returns

Cardano  vs.  APL

Cardano

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cardano are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Cardano exhibited solid returns over the last few months and may actually be approaching a breakup point.

APL

Risk-Adjusted Performance

Very Weak

Over the last 90 days APL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, APL is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cardano and APL

The main advantage of trading using opposite Cardano and APL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, APL 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 APL will offset losses from the drop in APL's long position.

The idea behind Cardano and APL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..