Correlation Between Dusk Network and Curve DAO
Can any of the company-specific risk be diversified away by investing in both Dusk Network and Curve DAO 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 Dusk Network and Curve DAO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dusk Network and Curve DAO Token, you can compare the effects of market volatilities on Dusk Network and Curve DAO 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 Dusk Network with a short position of Curve DAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dusk Network and Curve DAO.
Diversification Opportunities for Dusk Network and Curve DAO
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dusk and Curve is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dusk Network and Curve DAO Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curve DAO Token and Dusk Network 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 Dusk Network are associated (or correlated) with Curve DAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curve DAO Token has no effect on the direction of Dusk Network i.e., Dusk Network and Curve DAO go up and down completely randomly.
Pair Corralation between Dusk Network and Curve DAO
Assuming the 90 days trading horizon Dusk Network is expected to generate 1.27 times more return on investment than Curve DAO. However, Dusk Network is 1.27 times more volatile than Curve DAO Token. It trades about -0.17 of its potential returns per unit of risk. Curve DAO Token is currently generating about -0.24 per unit of risk. If you would invest 47.00 in Dusk Network on February 7, 2024 and sell it today you would lose (13.00) from holding Dusk Network or give up 27.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dusk Network vs. Curve DAO Token
Performance |
Timeline |
Dusk Network |
Curve DAO Token |
Dusk Network and Curve DAO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dusk Network and Curve DAO
The main advantage of trading using opposite Dusk Network and Curve DAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dusk Network position performs unexpectedly, Curve DAO 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 Curve DAO will offset losses from the drop in Curve DAO's long position.Dusk Network vs. Solana | Dusk Network vs. XRP | Dusk Network vs. Staked Ether | Dusk Network vs. The Open Network |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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