Correlation Between Hedera Hashgraph and NEO
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and NEO 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 NEO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and NEO, you can compare the effects of market volatilities on Hedera Hashgraph and NEO 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 NEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and NEO.
Diversification Opportunities for Hedera Hashgraph and NEO
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hedera and NEO is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and NEO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEO 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 NEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEO has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and NEO go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and NEO
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 1.24 times less return on investment than NEO. In addition to that, Hedera Hashgraph is 1.2 times more volatile than NEO. It trades about 0.09 of its total potential returns per unit of risk. NEO is currently generating about 0.13 per unit of volatility. If you would invest 1,425 in NEO on December 30, 2023 and sell it today you would earn a total of 205.00 from holding NEO or generate 14.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hedera Hashgraph vs. NEO
Performance |
Timeline |
Hedera Hashgraph |
NEO |
Hedera Hashgraph and NEO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hedera Hashgraph and NEO
The main advantage of trading using opposite Hedera Hashgraph and NEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, NEO 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 NEO will offset losses from the drop in NEO'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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