Correlation Between XDC Network and CONTENTBOX

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

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

Diversification Opportunities for XDC Network and CONTENTBOX

0.04

Correlation Coefficient

XDC Network  CONTENTBOX

Significant diversification

The 3 months correlation between XDC and CONTENTBOX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding XDC Network and CONTENTBOX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONTENTBOX and XDC Network 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 XDC Network are associated (or correlated) with CONTENTBOX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONTENTBOX has no effect on the direction of XDC Network i.e., XDC Network and CONTENTBOX go up and down completely randomly.

Pair Corralation between XDC Network and CONTENTBOX

Assuming the 90 days trading horizon XDC Network is expected to generate 0.38 times more return on investment than CONTENTBOX. However, XDC Network is 2.6 times less risky than CONTENTBOX. It trades about 0.15 of its potential returns per unit of risk. CONTENTBOX is currently generating about -0.09 per unit of risk. If you would invest  7.09  in XDC Network on May 4, 2025 and sell it today you would earn a total of  2.70  from holding XDC Network or generate 38.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

XDC Network  vs.  CONTENTBOX

XDC Network

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in XDC Network are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, XDC Network exhibited solid returns over the last few months and may actually be approaching a breakup point.

CONTENTBOX

Risk-Adjusted Performance

Very Weak

Over the last 90 days CONTENTBOX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for CONTENTBOX private investors.

Pair Trading with XDC Network and CONTENTBOX

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

The idea behind XDC Network and CONTENTBOX 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.