Correlation Between Gatechain Token and FileCoin

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

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

Diversification Opportunities for Gatechain Token and FileCoin

0.79

Correlation Coefficient

Gatechain Token  FileCoin

Poor diversification

The 3 months correlation between Gatechain and FileCoin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gatechain Token and FileCoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FileCoin and Gatechain 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 Gatechain Token are associated (or correlated) with FileCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FileCoin has no effect on the direction of Gatechain Token i.e., Gatechain Token and FileCoin go up and down completely randomly.

Pair Corralation between Gatechain Token and FileCoin

Assuming the 90 days horizon Gatechain Token is expected to under-perform the FileCoin. But the crypto coin apears to be less risky and, when comparing its historical volatility, Gatechain Token is 1.83 times less risky than FileCoin. The crypto coin trades about -0.21 of its potential returns per unit of risk. The FileCoin is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  279.00  in FileCoin on April 22, 2025 and sell it today you would earn a total of  1.00  from holding FileCoin or generate 0.36% return on investment over 90 days.

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

Gatechain Token  vs.  FileCoin

Gatechain Token

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gatechain Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for Gatechain Token shareholders.

FileCoin

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FileCoin are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, FileCoin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Gatechain Token and FileCoin

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

The idea behind Gatechain Token and FileCoin 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.