Correlation Between Qtum and Cronos
Can any of the company-specific risk be diversified away by investing in both Qtum and Cronos 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 Qtum and Cronos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qtum and Cronos, you can compare the effects of market volatilities on Qtum and Cronos 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 Qtum with a short position of Cronos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qtum and Cronos.
Diversification Opportunities for Qtum and Cronos
Almost no diversification
The 3 months correlation between Qtum and Cronos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qtum and Cronos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos and Qtum 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 Qtum are associated (or correlated) with Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos has no effect on the direction of Qtum i.e., Qtum and Cronos go up and down completely randomly.
Pair Corralation between Qtum and Cronos
Assuming the 90 days trading horizon Qtum is expected to generate 1.52 times more return on investment than Cronos. However, Qtum is 1.52 times more volatile than Cronos. It trades about 0.0 of its potential returns per unit of risk. Cronos is currently generating about -0.12 per unit of risk. If you would invest 425.00 in Qtum on January 20, 2024 and sell it today you would lose (25.00) from holding Qtum or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qtum vs. Cronos
Performance |
| Timeline |
| Qtum |
| Cronos |
Qtum and Cronos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qtum and Cronos
The main advantage of trading using opposite Qtum and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qtum position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' long position.The idea behind Qtum and Cronos 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| 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 | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |