Correlation Between Enjin Coin and HC
Can any of the company-specific risk be diversified away by investing in both Enjin Coin and HC 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 Enjin Coin and HC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enjin Coin and HC, you can compare the effects of market volatilities on Enjin Coin and HC 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 Enjin Coin with a short position of HC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enjin Coin and HC.
Diversification Opportunities for Enjin Coin and HC
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enjin and HC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Enjin Coin and HC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HC and Enjin Coin 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 Enjin Coin are associated (or correlated) with HC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HC has no effect on the direction of Enjin Coin i.e., Enjin Coin and HC go up and down completely randomly.
Pair Corralation between Enjin Coin and HC
Assuming the 90 days trading horizon Enjin Coin is expected to generate 0.36 times more return on investment than HC. However, Enjin Coin is 2.76 times less risky than HC. It trades about -0.21 of its potential returns per unit of risk. HC is currently generating about -0.33 per unit of risk. If you would invest 49.00 in Enjin Coin on January 26, 2024 and sell it today you would lose (14.00) from holding Enjin Coin or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enjin Coin vs. HC
Performance |
| Timeline |
| Enjin Coin |
| HC |
Enjin Coin and HC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enjin Coin and HC
The main advantage of trading using opposite Enjin Coin and HC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enjin Coin position performs unexpectedly, HC 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 HC will offset losses from the drop in HC's long position.The idea behind Enjin Coin and HC 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |