Correlation Between Polygon and HYN
Can any of the company-specific risk be diversified away by investing in both Polygon 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 Polygon and HYN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polygon and HYN, you can compare the effects of market volatilities on Polygon 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 Polygon with a short position of HYN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polygon and HYN.
Diversification Opportunities for Polygon and HYN
Very good diversification
The 3 months correlation between Polygon and HYN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Polygon and HYN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYN and Polygon 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 Polygon 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 Polygon i.e., Polygon and HYN go up and down completely randomly.
Pair Corralation between Polygon and HYN
If you would invest 3.31 in HYN on January 20, 2024 and sell it today you would earn a total of 0.00 from holding HYN or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Polygon vs. HYN
Performance |
| Timeline |
| Polygon |
| HYN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Polygon and HYN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polygon and HYN
The main advantage of trading using opposite Polygon and HYN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon 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.The idea behind Polygon and HYN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |