Correlation Between Puffer and Non Playable

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

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

Diversification Opportunities for Puffer and Non Playable

0.71

Correlation Coefficient

Puffer  Non Playable

Poor diversification

The 3 months correlation between Puffer and Non is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Puffer and Non Playable Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Non Playable Coin and Puffer 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 Puffer are associated (or correlated) with Non Playable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Non Playable Coin has no effect on the direction of Puffer i.e., Puffer and Non Playable go up and down completely randomly.

Pair Corralation between Puffer and Non Playable

Assuming the 90 days trading horizon Puffer is expected to under-perform the Non Playable. In addition to that, Puffer is 1.27 times more volatile than Non Playable Coin. It trades about -0.22 of its total potential returns per unit of risk. Non Playable Coin is currently generating about -0.2 per unit of volatility. If you would invest  2.39  in Non Playable Coin on July 16, 2025 and sell it today you would lose (0.79) from holding Non Playable Coin or give up 33.05% of portfolio value over 90 days.

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

Puffer  vs.  Non Playable Coin

Puffer

Risk-Adjusted Performance

Weakest

Over the last 90 days Puffer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Crypto's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for Puffer investors.

Non Playable Coin

Risk-Adjusted Performance

Weakest

Over the last 90 days Non Playable Coin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Non Playable Coin shareholders.

Pair Trading with Puffer and Non Playable

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

The idea behind Puffer and Non Playable Coin 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.