Correlation Between Chainlink and Gatechain Token

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Chainlink and Gatechain Token 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 Chainlink and Gatechain Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chainlink and Gatechain Token, you can compare the effects of market volatilities on Chainlink and Gatechain Token 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 Chainlink with a short position of Gatechain Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chainlink and Gatechain Token.

Diversification Opportunities for Chainlink and Gatechain Token

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Chainlink and Gatechain is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and Gatechain Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatechain Token and Chainlink 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 Chainlink are associated (or correlated) with Gatechain Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatechain Token has no effect on the direction of Chainlink i.e., Chainlink and Gatechain Token go up and down completely randomly.

Pair Corralation between Chainlink and Gatechain Token

Assuming the 90 days trading horizon Chainlink is expected to generate 1.45 times more return on investment than Gatechain Token. However, Chainlink is 1.45 times more volatile than Gatechain Token. It trades about 0.17 of its potential returns per unit of risk. Gatechain Token is currently generating about 0.23 per unit of risk. If you would invest  741.00  in Chainlink on December 29, 2023 and sell it today you would earn a total of  1,196  from holding Chainlink or generate 161.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Chainlink  vs.  Gatechain Token

 Performance 
       Timeline  
Chainlink 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Chainlink exhibited solid returns over the last few months and may actually be approaching a breakup point.
Gatechain Token 

Risk-Adjusted Performance

18 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Gatechain Token are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Gatechain Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

Chainlink and Gatechain Token Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chainlink and Gatechain Token

The main advantage of trading using opposite Chainlink and Gatechain Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainlink position performs unexpectedly, Gatechain Token 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 Gatechain Token will offset losses from the drop in Gatechain Token's long position.
The idea behind Chainlink and Gatechain Token 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Bonds Directory
Find actively traded corporate debentures issued by US companies
Volatility Analysis
Get historical volatility and risk analysis based on latest market data