Correlation Between Toncoin and Gatechain Token

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

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

Diversification Opportunities for Toncoin and Gatechain Token

0.64

Correlation Coefficient

Toncoin  Gatechain Token

Poor diversification

The 3 months correlation between Toncoin and Gatechain is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Toncoin and Gatechain Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatechain Token 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 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 Toncoin i.e., Toncoin and Gatechain Token go up and down completely randomly.

Pair Corralation between Toncoin and Gatechain Token

Assuming the 90 days trading horizon Toncoin is expected to generate 1.39 times more return on investment than Gatechain Token. However, Toncoin is 1.39 times more volatile than Gatechain Token. It trades about 0.04 of its potential returns per unit of risk. Gatechain Token is currently generating about -0.17 per unit of risk. If you would invest  320.00  in Toncoin on April 24, 2025 and sell it today you would earn a total of  13.00  from holding Toncoin or generate 4.06% return on investment over 90 days.

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

Toncoin  vs.  Gatechain Token

Toncoin

Risk-Adjusted Performance

Weak

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

Gatechain Token

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gatechain Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for Gatechain Token shareholders.

Pair Trading with Toncoin and Gatechain Token

The main advantage of trading using opposite Toncoin and Gatechain Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Toncoin 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 Toncoin 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.