Correlation Between Hedera Hashgraph and HYN
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and HYN 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 HYN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and HYN, you can compare the effects of market volatilities on Hedera Hashgraph and HYN 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 HYN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and HYN.
Diversification Opportunities for Hedera Hashgraph and HYN
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hedera and HYN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and HYN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYN 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 HYN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYN has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and HYN go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and HYN
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 1.46 times more return on investment than HYN. However, Hedera Hashgraph is 1.46 times more volatile than HYN. It trades about 0.0 of its potential returns per unit of risk. HYN is currently generating about -0.01 per unit of risk. If you would invest 14.00 in Hedera Hashgraph on January 21, 2024 and sell it today you would lose (5.93) from holding Hedera Hashgraph or give up 42.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 71.4% |
| Values | Daily Returns |
Hedera Hashgraph vs. HYN
Performance |
| Timeline |
| Hedera Hashgraph |
| HYN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hedera Hashgraph and HYN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and HYN
The main advantage of trading using opposite Hedera Hashgraph and HYN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, HYN 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 HYN will offset losses from the drop in HYN's 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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