Correlation Between Origin Protocol and Lisk
Can any of the company-specific risk be diversified away by investing in both Origin Protocol and Lisk 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 Lisk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Protocol and Lisk, you can compare the effects of market volatilities on Origin Protocol and Lisk 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 Lisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and Lisk.
Diversification Opportunities for Origin Protocol and Lisk
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Origin and Lisk is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and Lisk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lisk 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 Lisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lisk has no effect on the direction of Origin Protocol i.e., Origin Protocol and Lisk go up and down completely randomly.
Pair Corralation between Origin Protocol and Lisk
Assuming the 90 days trading horizon Origin Protocol is expected to under-perform the Lisk. But the crypto coin apears to be less risky and, when comparing its historical volatility, Origin Protocol is 1.12 times less risky than Lisk. The crypto coin trades about -0.16 of its potential returns per unit of risk. The Lisk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Lisk on January 20, 2024 and sell it today you would earn a total of 1.00 from holding Lisk or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Origin Protocol vs. Lisk
Performance |
| Timeline |
| Origin Protocol |
| Lisk |
Origin Protocol and Lisk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Protocol and Lisk
The main advantage of trading using opposite Origin Protocol and Lisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol position performs unexpectedly, Lisk 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 Lisk will offset losses from the drop in Lisk's 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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