Correlation Between XCAD Network and Vanar Chain
Can any of the company-specific risk be diversified away by investing in both XCAD Network and Vanar Chain 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 XCAD Network and Vanar Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XCAD Network and Vanar Chain, you can compare the effects of market volatilities on XCAD Network and Vanar Chain 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 XCAD Network with a short position of Vanar Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCAD Network and Vanar Chain.
Diversification Opportunities for XCAD Network and Vanar Chain
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XCAD and Vanar is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding XCAD Network and Vanar Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanar Chain and XCAD Network 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 XCAD Network are associated (or correlated) with Vanar Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanar Chain has no effect on the direction of XCAD Network i.e., XCAD Network and Vanar Chain go up and down completely randomly.
Pair Corralation between XCAD Network and Vanar Chain
Assuming the 90 days trading horizon XCAD Network is expected to under-perform the Vanar Chain. But the crypto coin apears to be less risky and, when comparing its historical volatility, XCAD Network is 1.49 times less risky than Vanar Chain. The crypto coin trades about -0.11 of its potential returns per unit of risk. The Vanar Chain is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8.20 in Vanar Chain on January 29, 2024 and sell it today you would earn a total of 8.80 from holding Vanar Chain or generate 107.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
XCAD Network vs. Vanar Chain
Performance |
Timeline |
XCAD Network |
Vanar Chain |
XCAD Network and Vanar Chain Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XCAD Network and Vanar Chain
The main advantage of trading using opposite XCAD Network and Vanar Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCAD Network position performs unexpectedly, Vanar Chain 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 Vanar Chain will offset losses from the drop in Vanar Chain's long position.XCAD Network vs. Solana | XCAD Network vs. XRP | XCAD Network vs. Staked Ether | XCAD Network vs. The Open Network |
Vanar Chain vs. Solana | Vanar Chain vs. XRP | Vanar Chain vs. Staked Ether | Vanar Chain vs. The Open Network |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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