Correlation Between FTX Token and Monero
Can any of the company-specific risk be diversified away by investing in both FTX Token and Monero 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 FTX Token and Monero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTX Token and Monero, you can compare the effects of market volatilities on FTX Token and Monero 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 FTX Token with a short position of Monero. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTX Token and Monero.
Diversification Opportunities for FTX Token and Monero
Very weak diversification
The 3 months correlation between FTX and Monero is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and Monero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monero and FTX Token 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 FTX Token are associated (or correlated) with Monero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monero has no effect on the direction of FTX Token i.e., FTX Token and Monero go up and down completely randomly.
Pair Corralation between FTX Token and Monero
Assuming the 90 days trading horizon FTX Token is expected to under-perform the Monero. In addition to that, FTX Token is 2.16 times more volatile than Monero. It trades about -0.18 of its total potential returns per unit of risk. Monero is currently generating about -0.14 per unit of volatility. If you would invest 13,772 in Monero on January 26, 2024 and sell it today you would lose (1,592) from holding Monero or give up 11.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTX Token vs. Monero
Performance |
| Timeline |
| FTX Token |
| Monero |
FTX Token and Monero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTX Token and Monero
The main advantage of trading using opposite FTX Token and Monero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, Monero 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 Monero will offset losses from the drop in Monero's long position.The idea behind FTX Token and Monero 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |