Correlation Between Toncoin and Orca

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

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

Diversification Opportunities for Toncoin and Orca

0.85

Correlation Coefficient

Toncoin  Orca

Very poor diversification

The 3 months correlation between Toncoin and Orca is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Toncoin and Orca in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orca 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 Orca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orca has no effect on the direction of Toncoin i.e., Toncoin and Orca go up and down completely randomly.

Pair Corralation between Toncoin and Orca

Assuming the 90 days trading horizon Toncoin is expected to generate 0.51 times more return on investment than Orca. However, Toncoin is 1.97 times less risky than Orca. It trades about 0.02 of its potential returns per unit of risk. Orca is currently generating about 0.0 per unit of risk. If you would invest  319.00  in Toncoin on April 23, 2025 and sell it today you would earn a total of  1.00  from holding Toncoin or generate 0.31% return on investment over 90 days.

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

Toncoin  vs.  Orca

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.

Orca

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Toncoin and Orca

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

The idea behind Toncoin and Orca 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.