Correlation Between Cosmos and Hedera Hashgraph
Can any of the company-specific risk be diversified away by investing in both Cosmos and Hedera Hashgraph 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 Cosmos and Hedera Hashgraph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and Hedera Hashgraph, you can compare the effects of market volatilities on Cosmos and Hedera Hashgraph 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 Cosmos with a short position of Hedera Hashgraph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and Hedera Hashgraph.
Diversification Opportunities for Cosmos and Hedera Hashgraph
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cosmos and Hedera is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and Hedera Hashgraph in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Hashgraph and Cosmos 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 Cosmos are associated (or correlated) with Hedera Hashgraph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Hashgraph has no effect on the direction of Cosmos i.e., Cosmos and Hedera Hashgraph go up and down completely randomly.
Pair Corralation between Cosmos and Hedera Hashgraph
Assuming the 90 days trading horizon Cosmos is expected to under-perform the Hedera Hashgraph. But the crypto coin apears to be less risky and, when comparing its historical volatility, Cosmos is 1.36 times less risky than Hedera Hashgraph. The crypto coin trades about -0.31 of its potential returns per unit of risk. The Hedera Hashgraph is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Hedera Hashgraph on January 19, 2024 and sell it today you would lose (3.12) from holding Hedera Hashgraph or give up 28.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos vs. Hedera Hashgraph
Performance |
| Timeline |
| Cosmos |
| Hedera Hashgraph |
Cosmos and Hedera Hashgraph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos and Hedera Hashgraph
The main advantage of trading using opposite Cosmos and Hedera Hashgraph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, Hedera Hashgraph 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 Hedera Hashgraph will offset losses from the drop in Hedera Hashgraph's long position.The idea behind Cosmos and Hedera Hashgraph 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.| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |