Correlation Between Nano and Status Network
Can any of the company-specific risk be diversified away by investing in both Nano 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 Nano and Status Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano and Status Network Token, you can compare the effects of market volatilities on Nano 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 Nano with a short position of Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano and Status Network.
Diversification Opportunities for Nano and Status Network
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nano and Status is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nano 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 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 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 Nano i.e., Nano and Status Network go up and down completely randomly.
Pair Corralation between Nano and Status Network
Assuming the 90 days trading horizon Nano is expected to generate 1.43 times less return on investment than Status Network. But when comparing it to its historical volatility, Nano is 1.53 times less risky than Status Network. It trades about 0.06 of its potential returns per unit of risk. Status Network Token is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.62 in Status Network Token on January 26, 2024 and sell it today you would earn a total of 1.54 from holding Status Network Token or generate 58.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano vs. Status Network Token
Performance |
| Timeline |
| Nano |
| Status Network Token |
Nano and Status Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano and Status Network
The main advantage of trading using opposite Nano and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano 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 Nano 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |