Correlation Between Hedera Hashgraph and Resolv

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

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

Diversification Opportunities for Hedera Hashgraph and Resolv

-0.29

Correlation Coefficient

Hedera Hashgraph  Resolv

Very good diversification

The 3 months correlation between Hedera and Resolv is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and Resolv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resolv and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with Resolv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resolv has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and Resolv go up and down completely randomly.

Pair Corralation between Hedera Hashgraph and Resolv

Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 20.29 times less return on investment than Resolv. But when comparing it to its historical volatility, Hedera Hashgraph is 22.23 times less risky than Resolv. It trades about 0.13 of its potential returns per unit of risk. Resolv is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Resolv on April 20, 2025 and sell it today you would earn a total of  15.00  from holding Resolv or generate 9.223372036854776E16% return on investment over 90 days.

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

Hedera Hashgraph  vs.  Resolv

Hedera Hashgraph

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hedera Hashgraph are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hedera Hashgraph exhibited solid returns over the last few months and may actually be approaching a breakup point.

Resolv

Risk-Adjusted Performance

OK

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

Pair Trading with Hedera Hashgraph and Resolv

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

The idea behind Hedera Hashgraph and Resolv 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 Anywhere module to track or share privately all of your investments from the convenience of any device.