Correlation Between Cetus Protocol and VINCI

Can any of the company-specific risk be diversified away by investing in both Cetus Protocol and VINCI 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 Cetus Protocol and VINCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cetus Protocol and VINCI, you can compare the effects of market volatilities on Cetus Protocol and VINCI 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 Cetus Protocol with a short position of VINCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cetus Protocol and VINCI.

Diversification Opportunities for Cetus Protocol and VINCI

-0.48

Correlation Coefficient

Cetus Protocol  VINCI

Very good diversification

The 3 months correlation between Cetus and VINCI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cetus Protocol and VINCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VINCI and Cetus 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 Cetus Protocol are associated (or correlated) with VINCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VINCI has no effect on the direction of Cetus Protocol i.e., Cetus Protocol and VINCI go up and down completely randomly.

Pair Corralation between Cetus Protocol and VINCI

Assuming the 90 days trading horizon Cetus Protocol is expected to under-perform the VINCI. In addition to that, Cetus Protocol is 2.67 times more volatile than VINCI. It trades about -0.05 of its total potential returns per unit of risk. VINCI is currently generating about 0.0 per unit of volatility. If you would invest  1,219  in VINCI on February 3, 2025 and sell it today you would lose (30.00) from holding VINCI or give up 2.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	78.79%
Values	Daily Returns

Cetus Protocol  vs.  VINCI

Cetus Protocol

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cetus Protocol has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for Cetus Protocol shareholders.

VINCI

Risk-Adjusted Performance

Very Weak

Over the last 90 days VINCI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, VINCI is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cetus Protocol and VINCI

The main advantage of trading using opposite Cetus Protocol and VINCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cetus Protocol position performs unexpectedly, VINCI 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 VINCI will offset losses from the drop in VINCI's long position.

The idea behind Cetus Protocol and VINCI 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.