Correlation Between Hedera Hashgraph and OmiseGO
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and OmiseGO 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 OmiseGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and OmiseGO, you can compare the effects of market volatilities on Hedera Hashgraph and OmiseGO 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 OmiseGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and OmiseGO.
Diversification Opportunities for Hedera Hashgraph and OmiseGO
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hedera and OmiseGO is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and OmiseGO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OmiseGO 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 OmiseGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OmiseGO has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and OmiseGO go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and OmiseGO
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 2.02 times less return on investment than OmiseGO. But when comparing it to its historical volatility, Hedera Hashgraph is 1.01 times less risky than OmiseGO. It trades about 0.09 of its potential returns per unit of risk. OmiseGO is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 88.00 in OmiseGO on December 30, 2023 and sell it today you would earn a total of 22.00 from holding OmiseGO or generate 25.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hedera Hashgraph vs. OmiseGO
Performance |
Timeline |
Hedera Hashgraph |
OmiseGO |
Hedera Hashgraph and OmiseGO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hedera Hashgraph and OmiseGO
The main advantage of trading using opposite Hedera Hashgraph and OmiseGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, OmiseGO 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 OmiseGO will offset losses from the drop in OmiseGO'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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