Correlation Between Big Time and Klaytn
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By analyzing existing cross correlation between Big Time and Klaytn, you can compare the effects of market volatilities on Big Time and Klaytn 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 Big Time with a short position of Klaytn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Time and Klaytn.
Diversification Opportunities for Big Time and Klaytn
Very weak diversification
The 3 months correlation between Big and Klaytn is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Big Time and Klaytn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaytn and Big Time 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 Big Time are associated (or correlated) with Klaytn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaytn has no effect on the direction of Big Time i.e., Big Time and Klaytn go up and down completely randomly.
Pair Corralation between Big Time and Klaytn
Assuming the 90 days trading horizon Big Time is expected to under-perform the Klaytn. In addition to that, Big Time is 1.45 times more volatile than Klaytn. It trades about -0.2 of its total potential returns per unit of risk. Klaytn is currently generating about -0.15 per unit of volatility. If you would invest 24.00 in Klaytn on January 30, 2024 and sell it today you would lose (5.00) from holding Klaytn or give up 20.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Big Time vs. Klaytn
Performance |
Timeline |
Big Time |
Klaytn |
Big Time and Klaytn Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Big Time and Klaytn
The main advantage of trading using opposite Big Time and Klaytn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Time position performs unexpectedly, Klaytn 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 Klaytn will offset losses from the drop in Klaytn's long position.The idea behind Big Time and Klaytn 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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