Correlation Between Cosmos and Status Network

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cosmos and Status 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 Cosmos and Status Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and Status Network Token, you can compare the effects of market volatilities on Cosmos and Status 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 Cosmos with a short position of Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and Status Network.

Diversification Opportunities for Cosmos and Status Network

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Cosmos and Status is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and Status Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Status Network Token and Cosmos 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 Cosmos are associated (or correlated) with Status Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Status Network Token has no effect on the direction of Cosmos i.e., Cosmos and Status Network go up and down completely randomly.

Pair Corralation between Cosmos and Status Network

Assuming the 90 days trading horizon Cosmos is expected to generate 1.58 times less return on investment than Status Network. But when comparing it to its historical volatility, Cosmos is 1.12 times less risky than Status Network. It trades about 0.1 of its potential returns per unit of risk. Status Network Token is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4.52  in Status Network Token on December 30, 2023 and sell it today you would earn a total of  0.73  from holding Status Network Token or generate 16.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Cosmos  vs.  Status Network Token

 Performance 
       Timeline  
Cosmos 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Cosmos exhibited solid returns over the last few months and may actually be approaching a breakup point.
Status Network Token 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Status Network Token are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Status Network exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cosmos and Status Network Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cosmos and Status Network

The main advantage of trading using opposite Cosmos and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, Status 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 Status Network will offset losses from the drop in Status Network's long position.
The idea behind Cosmos and Status Network Token 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.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Global Correlations
Find global opportunities by holding instruments from different markets