Correlation Between Cookie and Morpho

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

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

Diversification Opportunities for Cookie and Morpho

0.41

Correlation Coefficient

Cookie  Morpho

Very weak diversification

The 3 months correlation between Cookie and Morpho is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cookie and Morpho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morpho and Cookie 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 Cookie are associated (or correlated) with Morpho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morpho has no effect on the direction of Cookie i.e., Cookie and Morpho go up and down completely randomly.

Pair Corralation between Cookie and Morpho

Assuming the 90 days trading horizon Cookie is expected to generate 1.21 times less return on investment than Morpho. In addition to that, Cookie is 1.25 times more volatile than Morpho. It trades about 0.12 of its total potential returns per unit of risk. Morpho is currently generating about 0.18 per unit of volatility. If you would invest  101.00  in Morpho on April 20, 2025 and sell it today you would earn a total of  103.00  from holding Morpho or generate 101.98% return on investment over 90 days.

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

Cookie  vs.  Morpho

Cookie

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cookie are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Cookie sustained solid returns over the last few months and may actually be approaching a breakup point.

Morpho

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Morpho are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Morpho sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cookie and Morpho

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

The idea behind Cookie and Morpho 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.