Correlation Between Hedera Hashgraph and CEL
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and CEL 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 Hedera Hashgraph and CEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and CEL, you can compare the effects of market volatilities on Hedera Hashgraph and CEL 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 Hedera Hashgraph with a short position of CEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and CEL.
Diversification Opportunities for Hedera Hashgraph and CEL
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hedera and CEL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and CEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEL and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with CEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEL has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and CEL go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and CEL
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 1.63 times more return on investment than CEL. However, Hedera Hashgraph is 1.63 times more volatile than CEL. It trades about 0.16 of its potential returns per unit of risk. CEL is currently generating about -0.09 per unit of risk. If you would invest 11.00 in Hedera Hashgraph on January 26, 2024 and sell it today you would earn a total of 5.00 from holding Hedera Hashgraph or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedera Hashgraph vs. CEL
Performance |
| Timeline |
| Hedera Hashgraph |
| CEL |
Hedera Hashgraph and CEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and CEL
The main advantage of trading using opposite Hedera Hashgraph and CEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, CEL 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 CEL will offset losses from the drop in CEL's long position.| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph vs. Staked Ether |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |