Correlation Between MONA and MX Token
Can any of the company-specific risk be diversified away by investing in both MONA and MX Token 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 MONA and MX Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MONA and MX Token, you can compare the effects of market volatilities on MONA and MX Token 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 MONA with a short position of MX Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of MONA and MX Token.
Diversification Opportunities for MONA and MX Token
Very good diversification
The 3 months correlation between MONA and MX Token is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MONA and MX Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MX Token and MONA 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 MONA are associated (or correlated) with MX Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MX Token has no effect on the direction of MONA i.e., MONA and MX Token go up and down completely randomly.
Pair Corralation between MONA and MX Token
Assuming the 90 days trading horizon MONA is expected to under-perform the MX Token. But the crypto coin apears to be less risky and, when comparing its historical volatility, MONA is 9.47 times less risky than MX Token. The crypto coin trades about 0.0 of its potential returns per unit of risk. The MX Token is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 179.00 in MX Token on February 10, 2024 and sell it today you would earn a total of 316.00 from holding MX Token or generate 176.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MONA vs. MX Token
Performance |
| Timeline |
| MONA |
| MX Token |
MONA and MX Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MONA and MX Token
The main advantage of trading using opposite MONA and MX Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONA position performs unexpectedly, MX Token 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 MX Token will offset losses from the drop in MX Token's long position.The idea behind MONA and MX 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.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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