Correlation Between Cosmos and Monero
Can any of the company-specific risk be diversified away by investing in both Cosmos and Monero 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 Monero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and Monero, you can compare the effects of market volatilities on Cosmos and Monero 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 Monero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and Monero.
Diversification Opportunities for Cosmos and Monero
Significant diversification
The 3 months correlation between Cosmos and Monero is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and Monero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monero 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 Monero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monero has no effect on the direction of Cosmos i.e., Cosmos and Monero go up and down completely randomly.
Pair Corralation between Cosmos and Monero
Assuming the 90 days trading horizon Cosmos is expected to under-perform the Monero. In addition to that, Cosmos is 1.28 times more volatile than Monero. It trades about -0.01 of its total potential returns per unit of risk. Monero is currently generating about -0.01 per unit of volatility. If you would invest 22,728 in Monero on January 17, 2024 and sell it today you would lose (10,390) from holding Monero or give up 45.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos vs. Monero
Performance |
| Timeline |
| Cosmos |
| Monero |
Cosmos and Monero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos and Monero
The main advantage of trading using opposite Cosmos and Monero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, Monero 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 Monero will offset losses from the drop in Monero's long position.The idea behind Cosmos and Monero 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| 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 | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |