Correlation Between Origin Protocol and Cosmos
Can any of the company-specific risk be diversified away by investing in both Origin Protocol and Cosmos 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 Origin Protocol and Cosmos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Protocol and Cosmos, you can compare the effects of market volatilities on Origin Protocol and Cosmos 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 Origin Protocol with a short position of Cosmos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and Cosmos.
Diversification Opportunities for Origin Protocol and Cosmos
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Origin and Cosmos is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and Cosmos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos and Origin Protocol 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 Origin Protocol are associated (or correlated) with Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos has no effect on the direction of Origin Protocol i.e., Origin Protocol and Cosmos go up and down completely randomly.
Pair Corralation between Origin Protocol and Cosmos
Assuming the 90 days trading horizon Origin Protocol is expected to generate 1.61 times more return on investment than Cosmos. However, Origin Protocol is 1.61 times more volatile than Cosmos. It trades about -0.14 of its potential returns per unit of risk. Cosmos is currently generating about -0.28 per unit of risk. If you would invest 22.00 in Origin Protocol on January 24, 2024 and sell it today you would lose (6.00) from holding Origin Protocol or give up 27.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Protocol vs. Cosmos
Performance |
| Timeline |
| Origin Protocol |
| Cosmos |
Origin Protocol and Cosmos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Protocol and Cosmos
The main advantage of trading using opposite Origin Protocol and Cosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol position performs unexpectedly, Cosmos 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 Cosmos will offset losses from the drop in Cosmos' long position.| Origin Protocol vs. Solana | Origin Protocol vs. XRP | Origin Protocol vs. The Open Network | Origin Protocol 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |