Correlation Between LEO Token and Cookie

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

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

Diversification Opportunities for LEO Token and Cookie

-0.49

Correlation Coefficient

LEO Token  Cookie

Very good diversification

The 3 months correlation between LEO and Cookie is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LEO Token and Cookie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cookie and LEO 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 LEO Token are associated (or correlated) with Cookie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cookie has no effect on the direction of LEO Token i.e., LEO Token and Cookie go up and down completely randomly.

Pair Corralation between LEO Token and Cookie

Assuming the 90 days trading horizon LEO Token is expected to generate 14.15 times less return on investment than Cookie. But when comparing it to its historical volatility, LEO Token is 22.53 times less risky than Cookie. It trades about 0.09 of its potential returns per unit of risk. Cookie is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Cookie on April 7, 2025 and sell it today you would earn a total of  16.00  from holding Cookie or generate 9.223372036854776E16% return on investment over 90 days.

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

LEO Token  vs.  Cookie

LEO Token

Risk-Adjusted Performance

Very Weak

Over the last 90 days LEO Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, LEO Token is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cookie

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cookie are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cookie sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LEO Token and Cookie

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

The idea behind LEO Token and Cookie 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.