Chainlink Correlations

LINK Crypto  USD 18.54  0.06  0.32%   
The correlation of Chainlink is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chainlink moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chainlink moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Significant diversification

The correlation between Chainlink and NYA is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and NYA in the same portfolio, assuming nothing else is changed. Please note that Chainlink is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Chainlink. Also, note that the market value of any Cryptocurrency could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
  
The ability to find closely correlated positions to Chainlink could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chainlink when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chainlink - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chainlink to buy it.

Moving together with Chainlink Crypto Coin

  0.72STETH Staked EtherPairCorr
  0.75SUI SuiPairCorr
  0.85TRX TRONPairCorr
  0.75WBTC Wrapped BitcoinPairCorr
  0.72IMX Immutable XPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
OPSOL
DOTAVAX
TIAARB
OPARB
TRXSTETH
TRXSUI
  
High negative correlations   
SUIXRP
TIAXRP
ARBXRP
TRXXRP
XRPSOL
OPXRP

Risk-Adjusted Indicators

There is a big difference between Chainlink Crypto Coin performing well and Chainlink Cryptocurrency doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Chainlink's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
SOL  3.97  0.93  0.21  1.58  3.70 
 10.14 
 23.30 
XRP  1.72 (0.17) 0.00 (0.51) 0.00 
 3.92 
 11.14 
STETH  2.34  0.55  0.17  2.10  2.26 
 5.71 
 19.05 
ARB  4.62  0.97  0.24  1.05  3.59 
 13.53 
 39.99 
TIA  5.81  2.05  0.36 (1.46) 4.03 
 14.83 
 40.18 
SUI  5.07  1.77  0.39  2.06  3.30 
 15.03 
 39.84 
AVAX  4.14  0.97  0.19  2.50  3.95 
 10.29 
 26.19 
OP  5.71  1.36  0.26  2.18  4.25 
 14.12 
 49.30 
TRX  2.42  0.35  0.00  0.34  0.00 
 10.00 
 19.09 
DOT  3.18  0.77  0.12 (0.73) 3.47 
 6.59 
 29.80 

Be your own crypto manager

Our tools can tell you how much better you can do entering a position in Chainlink without increasing your portfolio risk or giving up the expected return. As an individual cryptocurrency investor, you need to find a reliable way to track the performance of all your tokens in a consistent way. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall cryptocurrency portfolio.

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How to invest in Chainlink

You need to understand the risk of getting into digital currencies such as LINK before investing. The dangers of trading cryptocurrencies are mainly related to their volatility. They are high-risk, speculative, susceptible to errors and hacking, mostly unregulated, and can be affected by forks or other discontinuation events. As an investor, you must understand these perils before you start trading. You can get a long position in Chainlink in four ways:

Buy LINK through an exchange

Get yourself a crypto wallet before embarking on your Chainlink journey. Crypto wallets exist as desktop applications, mobile apps, or websites, allowing you to secure your tokens or digital coins. Your crypto wallet stores the private keys to your tokens on the blockchain. Once you have a wallet, visit a reputable exchange and sign up for an account. You will need to complete the KYC process to be allowed to purchase Chainlink. But before you can buy the tokens, you have to provide a photo of your ID and proof of address, as well as a selfie. The platform will also require you to secure your account with 2FA before you can fund your account and buy the digital coins.

Purchase fractions of Chainlink through an exchange

You don't have to buy a full token when starting out since LINK is divisible by several decimal places. This allows you to purchase tiny fractions worth cents, but because of network fees, most platforms have a minimum figure, such as $10. You can then build your portfolio with time as you gain more confidence and learn the ropes of crypto trading.

Trade Chainlink through a broker

If you don't want to store your Chainlink Crypto Coin yourself for one reason or another, you can still trade through a broker. Brokers hold your tokens and trade frequently to generate profits. In addition, many brokerage platforms offer derivative products, such as contracts for difference, that enable you to speculate on price movements. Such products also allow brokers to accommodate leverage trading, potentially multiplying your profits.

Invest in LINK through an exchange-traded fund (ETF)

You can also invest in LINK through an exchange-traded fund (ETF). This instrument helps track an asset or select assets. You can buy and sell them on stock exchanges, making them the best option for an average investor. Some ETFs may comprise several coins to spread risk across a portfolio. Such ETFs are created and controlled by picking a basket with several coins, while favoring those that have performed well in the recent past.

Investing Ideas

In addition to having Chainlink in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked. Macroaxis thematic optimization helps investors identify companies most likely to benefit from changes or shifts in various micro-economic or local macro-level trends. Originating optimal thematic portfolios involves aligning investors' personal views, ideas, and beliefs with their actual investments.
Explore Thematic Ideas
Explore Investing Ideas  
When determining whether Chainlink offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Chainlink's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Chainlink Crypto.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Chainlink. Also, note that the market value of any Cryptocurrency could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Complementary Tools for Chainlink Crypto Coin analysis

When running Chainlink's price analysis, check to measure Chainlink's coin volatility and technical momentum indicators. We have many different tools that can be utilized to determine how healthy Chainlink is operating at the current time. Most of Chainlink's value examination focuses on studying past and present price actions to predict the probability of Chainlink's future price movements. You can analyze the coin against its peers and the financial market as a whole to determine factors that move Chainlink's coin price. Additionally, you may evaluate how adding Chainlink to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Chainlink's coin value and its market price as these two are different measures arrived at by different means. Cryptocurrency investors typically determine Chainlink value by looking at such factors as its true mass adoption, usability, application, safety as well as its ability to resist fraud and manipulation. On the other hand, Chainlink's price is the amount at which it trades on the cryptocurrency exchange or other digital marketplace that truly represents its supply and demand.