Correlation Between Dusk Network and Storj

Can any of the company-specific risk be diversified away by investing in both Dusk Network and Storj 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 Dusk Network and Storj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dusk Network and Storj, you can compare the effects of market volatilities on Dusk Network and Storj 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 Dusk Network with a short position of Storj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dusk Network and Storj.

Diversification Opportunities for Dusk Network and Storj

0.41

Correlation Coefficient

Dusk Network  Storj

Very weak diversification

The 3 months correlation between Dusk and Storj is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dusk Network and Storj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storj and Dusk Network 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 Dusk Network are associated (or correlated) with Storj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storj has no effect on the direction of Dusk Network i.e., Dusk Network and Storj go up and down completely randomly.

Pair Corralation between Dusk Network and Storj

Assuming the 90 days trading horizon Dusk Network is expected to generate 0.88 times more return on investment than Storj. However, Dusk Network is 1.14 times less risky than Storj. It trades about 0.11 of its potential returns per unit of risk. Storj is currently generating about 0.08 per unit of risk. If you would invest  12.00  in Dusk Network on January 24, 2024 and sell it today you would earn a total of  27.00  from holding Dusk Network or generate 225.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Dusk Network  vs.  Storj

Dusk Network

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dusk Network are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Dusk Network exhibited solid returns over the last few months and may actually be approaching a breakup point.

Storj

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Storj are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking indicators, Storj exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dusk Network and Storj

The main advantage of trading using opposite Dusk Network and Storj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dusk Network position performs unexpectedly, Storj 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 Storj will offset losses from the drop in Storj's long position.

The idea behind Dusk Network and Storj 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.