Correlation Between Qtum and Power Ledger
Can any of the company-specific risk be diversified away by investing in both Qtum 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 Qtum and Power Ledger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qtum and Power Ledger, you can compare the effects of market volatilities on Qtum 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 Qtum with a short position of Power Ledger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qtum and Power Ledger.
Diversification Opportunities for Qtum and Power Ledger
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qtum and Power is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Qtum and Power Ledger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Ledger 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 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 Qtum i.e., Qtum and Power Ledger go up and down completely randomly.
Pair Corralation between Qtum and Power Ledger
Assuming the 90 days trading horizon Qtum is expected to generate 1.08 times more return on investment than Power Ledger. However, Qtum is 1.08 times more volatile than Power Ledger. It trades about -0.04 of its potential returns per unit of risk. Power Ledger is currently generating about -0.18 per unit of risk. If you would invest 476.00 in Qtum on January 25, 2024 and sell it today you would lose (52.00) from holding Qtum or give up 10.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qtum vs. Power Ledger
Performance |
| Timeline |
| Qtum |
| Power Ledger |
Qtum and Power Ledger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qtum and Power Ledger
The main advantage of trading using opposite Qtum and Power Ledger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qtum 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.The idea behind Qtum and Power Ledger 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.| Power Ledger vs. Solana | Power Ledger vs. XRP | Power Ledger vs. Staked Ether | Power Ledger 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |