Correlation Between Hedera Hashgraph and Cronos
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and Cronos 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 Hedera Hashgraph and Cronos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and Cronos, you can compare the effects of market volatilities on Hedera Hashgraph and Cronos 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 Hedera Hashgraph with a short position of Cronos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and Cronos.
Diversification Opportunities for Hedera Hashgraph and Cronos
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hedera and Cronos is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and Cronos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and Cronos go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and Cronos
Assuming the 90 days trading horizon Hedera Hashgraph is expected to under-perform the Cronos. In addition to that, Hedera Hashgraph is 1.44 times more volatile than Cronos. It trades about -0.15 of its total potential returns per unit of risk. Cronos is currently generating about -0.12 per unit of volatility. If you would invest 14.00 in Cronos on January 20, 2024 and sell it today you would lose (2.00) from holding Cronos or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedera Hashgraph vs. Cronos
Performance |
| Timeline |
| Hedera Hashgraph |
| Cronos |
Hedera Hashgraph and Cronos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and Cronos
The main advantage of trading using opposite Hedera Hashgraph and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' long position.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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