Correlation Between Hedera Hashgraph and Gatechain Token
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and Gatechain 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 Hedera Hashgraph and Gatechain Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and Gatechain Token, you can compare the effects of market volatilities on Hedera Hashgraph and Gatechain 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 Hedera Hashgraph with a short position of Gatechain Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and Gatechain Token.
Diversification Opportunities for Hedera Hashgraph and Gatechain Token
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hedera and Gatechain is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and Gatechain Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatechain Token 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 Gatechain Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatechain Token has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and Gatechain Token go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and Gatechain Token
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 4.25 times more return on investment than Gatechain Token. However, Hedera Hashgraph is 4.25 times more volatile than Gatechain Token. It trades about 0.16 of its potential returns per unit of risk. Gatechain Token is currently generating about -0.18 per unit of risk. If you would invest 11.00 in Hedera Hashgraph on January 26, 2024 and sell it today you would earn a total of 5.00 from holding Hedera Hashgraph or generate 45.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hedera Hashgraph vs. Gatechain Token
Performance |
Timeline |
Hedera Hashgraph |
Gatechain Token |
Hedera Hashgraph and Gatechain Token Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hedera Hashgraph and Gatechain Token
The main advantage of trading using opposite Hedera Hashgraph and Gatechain Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, Gatechain 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 Gatechain Token will offset losses from the drop in Gatechain Token's long position.Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph vs. Staked Ether |
Gatechain Token vs. Solana | Gatechain Token vs. XRP | Gatechain Token vs. Staked Ether | Gatechain Token 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |