Correlation Between Qtum and Enjin Coin
Can any of the company-specific risk be diversified away by investing in both Qtum and Enjin Coin 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 Qtum and Enjin Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qtum and Enjin Coin, you can compare the effects of market volatilities on Qtum and Enjin Coin 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 Qtum with a short position of Enjin Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qtum and Enjin Coin.
Diversification Opportunities for Qtum and Enjin Coin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qtum and Enjin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qtum and Enjin Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enjin Coin and Qtum 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 Qtum are associated (or correlated) with Enjin Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enjin Coin has no effect on the direction of Qtum i.e., Qtum and Enjin Coin go up and down completely randomly.
Pair Corralation between Qtum and Enjin Coin
Assuming the 90 days trading horizon Qtum is expected to generate 1.21 times more return on investment than Enjin Coin. However, Qtum is 1.21 times more volatile than Enjin Coin. It trades about 0.0 of its potential returns per unit of risk. Enjin Coin is currently generating about -0.29 per unit of risk. If you would invest 425.00 in Qtum on January 20, 2024 and sell it today you would lose (25.00) from holding Qtum or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qtum vs. Enjin Coin
Performance |
| Timeline |
| Qtum |
| Enjin Coin |
Qtum and Enjin Coin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qtum and Enjin Coin
The main advantage of trading using opposite Qtum and Enjin Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qtum position performs unexpectedly, Enjin Coin 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 Enjin Coin will offset losses from the drop in Enjin Coin's long position.The idea behind Qtum and Enjin Coin 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |