Correlation Between Hedera Hashgraph and Litecoin
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and Litecoin 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 Litecoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and Litecoin, you can compare the effects of market volatilities on Hedera Hashgraph and Litecoin 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 Litecoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and Litecoin.
Diversification Opportunities for Hedera Hashgraph and Litecoin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hedera and Litecoin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and Litecoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litecoin 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 Litecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litecoin has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and Litecoin go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and Litecoin
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 3.37 times more return on investment than Litecoin. However, Hedera Hashgraph is 3.37 times more volatile than Litecoin. It trades about 0.13 of its potential returns per unit of risk. Litecoin is currently generating about -0.07 per unit of risk. If you would invest 12.00 in Hedera Hashgraph on January 25, 2024 and sell it today you would earn a total of 4.00 from holding Hedera Hashgraph or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedera Hashgraph vs. Litecoin
Performance |
| Timeline |
| Hedera Hashgraph |
| Litecoin |
Hedera Hashgraph and Litecoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and Litecoin
The main advantage of trading using opposite Hedera Hashgraph and Litecoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, Litecoin 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 Litecoin will offset losses from the drop in Litecoin's long position.| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph vs. Staked Ether |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |