Correlation Between Chainlink and Status Network
Can any of the company-specific risk be diversified away by investing in both Chainlink and Status 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 Chainlink and Status Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chainlink and Status Network Token, you can compare the effects of market volatilities on Chainlink and Status 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 Chainlink with a short position of Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chainlink and Status Network.
Diversification Opportunities for Chainlink and Status Network
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chainlink and Status is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and Status Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Status Network Token and Chainlink 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 Chainlink are associated (or correlated) with Status Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Status Network Token has no effect on the direction of Chainlink i.e., Chainlink and Status Network go up and down completely randomly.
Pair Corralation between Chainlink and Status Network
Assuming the 90 days trading horizon Chainlink is expected to under-perform the Status Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, Chainlink is 1.17 times less risky than Status Network. The crypto coin trades about -0.2 of its potential returns per unit of risk. The Status Network Token is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 4.95 in Status Network Token on January 26, 2024 and sell it today you would lose (0.79) from holding Status Network Token or give up 15.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chainlink vs. Status Network Token
Performance |
| Timeline |
| Chainlink |
| Status Network Token |
Chainlink and Status Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chainlink and Status Network
The main advantage of trading using opposite Chainlink and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainlink position performs unexpectedly, Status 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 Status Network will offset losses from the drop in Status Network's long position.The idea behind Chainlink and Status Network Token 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.| Status Network vs. Solana | Status Network vs. XRP | Status Network vs. Staked Ether | Status 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| 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 | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |