Correlation Between CHP and IKA Token

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

Diversification Opportunities for CHP and IKA Token

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between CHP and IKA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CHP and IKA Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKA Token and CHP 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 CHP are associated (or correlated) with IKA Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKA Token has no effect on the direction of CHP i.e., CHP and IKA Token go up and down completely randomly.

Pair Corralation between CHP and IKA Token

Assuming the 90 days trading horizon CHP is expected to generate 116.36 times less return on investment than IKA Token. But when comparing it to its historical volatility, CHP is 29.28 times less risky than IKA Token. It trades about 0.03 of its potential returns per unit of risk. IKA Token is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.00  in IKA Token on July 20, 2025 and sell it today you would earn a total of  2.08  from holding IKA Token or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

CHP  vs.  IKA Token

 Performance 
       Timeline  
CHP 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CHP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CHP may actually be approaching a critical reversion point that can send shares even higher in November 2025.
IKA Token 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in IKA Token are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, IKA Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

CHP and IKA Token Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CHP and IKA Token

The main advantage of trading using opposite CHP and IKA Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHP position performs unexpectedly, IKA Token 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 IKA Token will offset losses from the drop in IKA Token's long position.
The idea behind CHP and IKA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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