Correlation Between Casper Network and Solana
Can any of the company-specific risk be diversified away by investing in both Casper Network and Solana 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 Casper Network and Solana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casper Network and Solana, you can compare the effects of market volatilities on Casper Network and Solana 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 Casper Network with a short position of Solana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casper Network and Solana.
Diversification Opportunities for Casper Network and Solana
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Casper and Solana is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Casper Network and Solana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solana and Casper 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 Casper Network are associated (or correlated) with Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solana has no effect on the direction of Casper Network i.e., Casper Network and Solana go up and down completely randomly.
Pair Corralation between Casper Network and Solana
Assuming the 90 days trading horizon Casper Network is expected to under-perform the Solana. But the crypto coin apears to be less risky and, when comparing its historical volatility, Casper Network is 1.35 times less risky than Solana. The crypto coin trades about -0.15 of its potential returns per unit of risk. The Solana is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 13,015 in Solana on March 1, 2024 and sell it today you would earn a total of 3,696 from holding Solana or generate 28.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Casper Network vs. Solana
Performance |
Timeline |
Casper Network |
Solana |
Casper Network and Solana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Casper Network and Solana
The main advantage of trading using opposite Casper Network and Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casper Network position performs unexpectedly, Solana 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 Solana will offset losses from the drop in Solana's long position.Casper Network vs. Solana | Casper Network vs. XRP | Casper Network vs. Staked Ether | Casper Network vs. The Open Network |
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.
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