Correlation Between Origin Protocol and THR
Can any of the company-specific risk be diversified away by investing in both Origin Protocol and THR 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 THR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Protocol and THR, you can compare the effects of market volatilities on Origin Protocol and THR 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 THR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and THR.
Diversification Opportunities for Origin Protocol and THR
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and THR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and THR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THR 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 THR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THR has no effect on the direction of Origin Protocol i.e., Origin Protocol and THR go up and down completely randomly.
Pair Corralation between Origin Protocol and THR
Assuming the 90 days trading horizon Origin Protocol is expected to generate 14.16 times less return on investment than THR. But when comparing it to its historical volatility, Origin Protocol is 6.26 times less risky than THR. It trades about 0.03 of its potential returns per unit of risk. THR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 148,800 in THR on January 26, 2024 and sell it today you would earn a total of 900,915 from holding THR or generate 605.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.04% |
| Values | Daily Returns |
Origin Protocol vs. THR
Performance |
| Timeline |
| Origin Protocol |
| THR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Origin Protocol and THR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Protocol and THR
The main advantage of trading using opposite Origin Protocol and THR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol position performs unexpectedly, THR 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 THR will offset losses from the drop in THR's long position.| Origin Protocol vs. Solana | Origin Protocol vs. XRP | Origin Protocol vs. Staked Ether | Origin Protocol vs. The Open Network |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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