Correlation Between Nano and Klaytn
Can any of the company-specific risk be diversified away by investing in both Nano and Klaytn 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 Nano and Klaytn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano and Klaytn, you can compare the effects of market volatilities on Nano and Klaytn 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 Nano with a short position of Klaytn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano and Klaytn.
Diversification Opportunities for Nano and Klaytn
Almost no diversification
The 3 months correlation between Nano and Klaytn is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nano and Klaytn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaytn and Nano 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 Nano are associated (or correlated) with Klaytn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaytn has no effect on the direction of Nano i.e., Nano and Klaytn go up and down completely randomly.
Pair Corralation between Nano and Klaytn
Assuming the 90 days trading horizon Nano is expected to generate 0.94 times more return on investment than Klaytn. However, Nano is 1.06 times less risky than Klaytn. It trades about -0.1 of its potential returns per unit of risk. Klaytn is currently generating about -0.15 per unit of risk. If you would invest 136.00 in Nano on January 30, 2024 and sell it today you would lose (19.00) from holding Nano or give up 13.97% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nano vs. Klaytn
Performance |
Timeline |
Nano |
Klaytn |
Nano and Klaytn Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nano and Klaytn
The main advantage of trading using opposite Nano and Klaytn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano position performs unexpectedly, Klaytn 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 Klaytn will offset losses from the drop in Klaytn's long position.The idea behind Nano and Klaytn 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |