Correlation Between Threshold Network and OKB

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Can any of the company-specific risk be diversified away by investing in both Threshold Network and OKB 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 Threshold Network and OKB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Threshold Network Token and OKB, you can compare the effects of market volatilities on Threshold Network and OKB 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 Threshold Network with a short position of OKB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threshold Network and OKB.

Diversification Opportunities for Threshold Network and OKB

  Correlation Coefficient

Poor diversification

The 3 months correlation between Threshold and OKB is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Threshold Network Token and OKB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OKB and Threshold 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 Threshold Network Token are associated (or correlated) with OKB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OKB has no effect on the direction of Threshold Network i.e., Threshold Network and OKB go up and down completely randomly.

Pair Corralation between Threshold Network and OKB

Given the investment horizon of 90 days Threshold Network Token is expected to generate 5.36 times more return on investment than OKB. However, Threshold Network is 5.36 times more volatile than OKB. It trades about 0.04 of its potential returns per unit of risk. OKB is currently generating about 0.05 per unit of risk. If you would invest  0.00  in Threshold Network Token on December 23, 2022 and sell it today you would earn a total of  4.14  from holding Threshold Network Token or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Threshold Network Token  vs.  OKB

 Performance (%) 
Threshold Network Token 

Threshold Performance

10 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Threshold Network Token are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Threshold Network exhibited solid returns over the last few months and may actually be approaching a breakup point.

OKB Performance

16 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in OKB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking signals, OKB exhibited solid returns over the last few months and may actually be approaching a breakup point.

Threshold Network and OKB Volatility Contrast

   Predicted Return Density   

Pair Trading with Threshold Network and OKB

The main advantage of trading using opposite Threshold Network and OKB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threshold Network position performs unexpectedly, OKB 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 OKB will offset losses from the drop in OKB's long position.
Threshold Network vs. XRP
Threshold Network vs. Aptos
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Threshold Network vs. Polygon
The idea behind Threshold Network Token and OKB 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.
OKB vs. Aptos
OKB vs. Solana
OKB vs. Polygon
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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