Correlation Between Maverick Protocol and XAS

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

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

Diversification Opportunities for Maverick Protocol and XAS

0.6

Correlation Coefficient

Maverick Protocol  XAS

Poor diversification

The 3 months correlation between Maverick and XAS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Maverick Protocol and XAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAS and Maverick 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 Maverick Protocol are associated (or correlated) with XAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAS has no effect on the direction of Maverick Protocol i.e., Maverick Protocol and XAS go up and down completely randomly.

Pair Corralation between Maverick Protocol and XAS

If you would invest  5.25  in XAS on January 30, 2024 and sell it today you would earn a total of  0.00  from holding XAS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Maverick Protocol  vs.  XAS

Maverick Protocol

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maverick Protocol 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 rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for Maverick Protocol shareholders.

XAS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Maverick Protocol and XAS

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

The idea behind Maverick Protocol and XAS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.