Correlation Between FTX Token and Theta Network
Can any of the company-specific risk be diversified away by investing in both FTX Token and Theta 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 FTX Token and Theta Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTX Token and Theta Network, you can compare the effects of market volatilities on FTX Token and Theta 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 FTX Token with a short position of Theta Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTX Token and Theta Network.
Diversification Opportunities for FTX Token and Theta Network
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FTX and Theta is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and Theta Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theta Network and FTX Token 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 FTX Token are associated (or correlated) with Theta Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theta Network has no effect on the direction of FTX Token i.e., FTX Token and Theta Network go up and down completely randomly.
Pair Corralation between FTX Token and Theta Network
Assuming the 90 days trading horizon FTX Token is expected to generate 1.13 times more return on investment than Theta Network. However, FTX Token is 1.13 times more volatile than Theta Network. It trades about -0.05 of its potential returns per unit of risk. Theta Network is currently generating about -0.11 per unit of risk. If you would invest 170.00 in FTX Token on February 2, 2024 and sell it today you would lose (26.00) from holding FTX Token or give up 15.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FTX Token vs. Theta Network
Performance |
Timeline |
FTX Token |
Theta Network |
FTX Token and Theta Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FTX Token and Theta Network
The main advantage of trading using opposite FTX Token and Theta Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, Theta 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 Theta Network will offset losses from the drop in Theta Network's long position.The idea behind FTX Token and Theta 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.Theta Network vs. Solana | Theta Network vs. XRP | Theta Network vs. Staked Ether | Theta 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |