Correlation Between Gatechain Token and Tether Gold

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

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

Diversification Opportunities for Gatechain Token and Tether Gold

-0.41

Correlation Coefficient

Gatechain Token  Tether Gold

Very good diversification

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

Pair Corralation between Gatechain Token and Tether Gold

Assuming the 90 days horizon Gatechain Token is expected to under-perform the Tether Gold. In addition to that, Gatechain Token is 1.9 times more volatile than Tether Gold. It trades about -0.21 of its total potential returns per unit of risk. Tether Gold is currently generating about 0.02 per unit of volatility. If you would invest  332,110  in Tether Gold on April 22, 2025 and sell it today you would earn a total of  2,882  from holding Tether Gold or generate 0.87% return on investment over 90 days.

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

Gatechain Token  vs.  Tether Gold

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.

Tether Gold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tether Gold are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Tether Gold 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 Tether Gold

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

The idea behind Gatechain Token and Tether Gold 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..