Correlation Between Toncoin and CHR

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

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

Diversification Opportunities for Toncoin and CHR

0.66

Correlation Coefficient

Toncoin  CHR

Poor diversification

The 3 months correlation between Toncoin and CHR is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Toncoin and CHR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHR and Toncoin 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 Toncoin are associated (or correlated) with CHR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHR has no effect on the direction of Toncoin i.e., Toncoin and CHR go up and down completely randomly.

Pair Corralation between Toncoin and CHR

Assuming the 90 days trading horizon Toncoin is expected to generate 3.42 times less return on investment than CHR. But when comparing it to its historical volatility, Toncoin is 1.85 times less risky than CHR. It trades about 0.02 of its potential returns per unit of risk. CHR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  9.45  in CHR on April 22, 2025 and sell it today you would earn a total of  0.22  from holding CHR or generate 2.33% return on investment over 90 days.

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

Toncoin  vs.  CHR

Toncoin

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Toncoin are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Toncoin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

CHR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CHR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CHR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Toncoin and CHR

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

The idea behind Toncoin and CHR 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.