Correlation Between THR and Enjin Coin
Can any of the company-specific risk be diversified away by investing in both THR and Enjin Coin 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 THR and Enjin Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THR and Enjin Coin, you can compare the effects of market volatilities on THR and Enjin Coin 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 THR with a short position of Enjin Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of THR and Enjin Coin.
Diversification Opportunities for THR and Enjin Coin
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between THR and Enjin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding THR and Enjin Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enjin Coin and THR 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 THR are associated (or correlated) with Enjin Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enjin Coin has no effect on the direction of THR i.e., THR and Enjin Coin go up and down completely randomly.
Pair Corralation between THR and Enjin Coin
Assuming the 90 days trading horizon THR is expected to generate 12.08 times more return on investment than Enjin Coin. However, THR is 12.08 times more volatile than Enjin Coin. It trades about 0.09 of its potential returns per unit of risk. Enjin Coin is currently generating about 0.01 per unit of risk. If you would invest 148,800 in THR on January 20, 2024 and sell it today you would earn a total of 900,915 from holding THR or generate 605.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.19% |
| Values | Daily Returns |
THR vs. Enjin Coin
Performance |
| Timeline |
| THR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enjin Coin |
THR and Enjin Coin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THR and Enjin Coin
The main advantage of trading using opposite THR and Enjin Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THR position performs unexpectedly, Enjin Coin 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 Enjin Coin will offset losses from the drop in Enjin Coin's long position.The idea behind THR and Enjin Coin 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| 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 | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| 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 | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |