Correlation Between Origin Protocol and Power Ledger
Can any of the company-specific risk be diversified away by investing in both Origin Protocol and Power Ledger 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 Origin Protocol and Power Ledger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Protocol and Power Ledger, you can compare the effects of market volatilities on Origin Protocol and Power Ledger 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 Origin Protocol with a short position of Power Ledger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and Power Ledger.
Diversification Opportunities for Origin Protocol and Power Ledger
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Origin and Power is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and Power Ledger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Ledger and Origin Protocol 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 Origin Protocol are associated (or correlated) with Power Ledger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Ledger has no effect on the direction of Origin Protocol i.e., Origin Protocol and Power Ledger go up and down completely randomly.
Pair Corralation between Origin Protocol and Power Ledger
Assuming the 90 days trading horizon Origin Protocol is expected to generate 0.96 times more return on investment than Power Ledger. However, Origin Protocol is 1.04 times less risky than Power Ledger. It trades about -0.02 of its potential returns per unit of risk. Power Ledger is currently generating about -0.05 per unit of risk. If you would invest 18.00 in Origin Protocol on January 19, 2024 and sell it today you would lose (3.00) from holding Origin Protocol or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Protocol vs. Power Ledger
Performance |
| Timeline |
| Origin Protocol |
| Power Ledger |
Origin Protocol and Power Ledger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Protocol and Power Ledger
The main advantage of trading using opposite Origin Protocol and Power Ledger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol position performs unexpectedly, Power Ledger 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 Power Ledger will offset losses from the drop in Power Ledger's long position.| Origin Protocol vs. Staked Ether | Origin Protocol vs. XCAD Network | Origin Protocol vs. Phala Network | Origin Protocol vs. EOSDAC |
| Power Ledger vs. Staked Ether | Power Ledger vs. XCAD Network | Power Ledger vs. Phala Network | Power Ledger vs. EOSDAC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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