Correlation Between Cosmos and MX Token
Can any of the company-specific risk be diversified away by investing in both Cosmos and MX 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 Cosmos and MX Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and MX Token, you can compare the effects of market volatilities on Cosmos and MX 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 Cosmos with a short position of MX Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and MX Token.
Diversification Opportunities for Cosmos and MX Token
Significant diversification
The 3 months correlation between Cosmos and MX Token is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and MX Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MX Token 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 MX Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MX Token has no effect on the direction of Cosmos i.e., Cosmos and MX Token go up and down completely randomly.
Pair Corralation between Cosmos and MX Token
Assuming the 90 days trading horizon Cosmos is expected to under-perform the MX Token. In addition to that, Cosmos is 1.19 times more volatile than MX Token. It trades about -0.06 of its total potential returns per unit of risk. MX Token is currently generating about 0.2 per unit of volatility. If you would invest 299.00 in MX Token on January 20, 2024 and sell it today you would earn a total of 241.00 from holding MX Token or generate 80.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos vs. MX Token
Performance |
| Timeline |
| Cosmos |
| MX Token |
Cosmos and MX Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos and MX Token
The main advantage of trading using opposite Cosmos and MX Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, MX 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 MX Token will offset losses from the drop in MX Token's long position.The idea behind Cosmos and MX 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.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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| 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 | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |