Correlation Between Hedera Hashgraph and Numeraire
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and Numeraire 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 Numeraire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and Numeraire, you can compare the effects of market volatilities on Hedera Hashgraph and Numeraire 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 Numeraire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and Numeraire.
Diversification Opportunities for Hedera Hashgraph and Numeraire
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hedera and Numeraire is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and Numeraire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Numeraire 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 Numeraire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Numeraire has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and Numeraire go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and Numeraire
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 2.98 times more return on investment than Numeraire. However, Hedera Hashgraph is 2.98 times more volatile than Numeraire. It trades about 0.14 of its potential returns per unit of risk. Numeraire is currently generating about -0.17 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 | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hedera Hashgraph vs. Numeraire
Performance |
| Timeline |
| Hedera Hashgraph |
| Numeraire |
Hedera Hashgraph and Numeraire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and Numeraire
The main advantage of trading using opposite Hedera Hashgraph and Numeraire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, Numeraire 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 Numeraire will offset losses from the drop in Numeraire'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |