Correlation Between AE and Render Network

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

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

Diversification Opportunities for AE and Render Network

0.74

Correlation Coefficient

AE  Render Network

Poor diversification

The 3 months correlation between AE and Render is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AE and Render Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Render Network and AE 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 AE are associated (or correlated) with Render Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Render Network has no effect on the direction of AE i.e., AE and Render Network go up and down completely randomly.

Pair Corralation between AE and Render Network

Assuming the 90 days horizon AE is expected to under-perform the Render Network. In addition to that, AE is 1.56 times more volatile than Render Network. It trades about -0.13 of its total potential returns per unit of risk. Render Network is currently generating about 0.03 per unit of volatility. If you would invest  442.00  in Render Network on April 24, 2025 and sell it today you would earn a total of  11.00  from holding Render Network or generate 2.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

AE  vs.  Render Network

AE

Risk-Adjusted Performance

Very Weak

Over the last 90 days AE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for AE shareholders.

Render Network

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Render Network are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Render Network may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AE and Render Network

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

The idea behind AE and Render Network 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.