Correlation Between EM and Pyth Network

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

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

Diversification Opportunities for EM and Pyth Network

0.0

Correlation Coefficient

EM  Pyth Network

Pay attention - limited upside

The 3 months correlation between EM and Pyth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EM and Pyth Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyth Network and EM 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 EM are associated (or correlated) with Pyth Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyth Network has no effect on the direction of EM i.e., EM and Pyth Network go up and down completely randomly.

Pair Corralation between EM and Pyth Network

If you would invest  15.00  in Pyth Network on April 30, 2025 and sell it today you would lose (2.00) from holding Pyth Network or give up 13.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

EM  vs.  Pyth Network

EM

Risk-Adjusted Performance

Very Weak

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

Pyth Network

Risk-Adjusted Performance

Very Weak

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

Pair Trading with EM and Pyth Network

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

The idea behind EM and Pyth Network 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.