Correlation Between SingularityNET and XRP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SingularityNET and XRP 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 SingularityNET and XRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SingularityNET and XRP, you can compare the effects of market volatilities on SingularityNET and XRP 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 SingularityNET with a short position of XRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SingularityNET and XRP.

Diversification Opportunities for SingularityNET and XRP

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between SingularityNET and XRP is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SingularityNET and XRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XRP and SingularityNET 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 SingularityNET are associated (or correlated) with XRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XRP has no effect on the direction of SingularityNET i.e., SingularityNET and XRP go up and down completely randomly.

Pair Corralation between SingularityNET and XRP

Assuming the 90 days trading horizon SingularityNET is expected to under-perform the XRP. But the crypto coin apears to be less risky and, when comparing its historical volatility, SingularityNET is 1.1 times less risky than XRP. The crypto coin trades about -0.08 of its potential returns per unit of risk. The XRP is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  46.00  in XRP on August 31, 2022 and sell it today you would lose (7.00)  from holding XRP or give up 15.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

SingularityNET  vs.  XRP

 Performance (%) 
       Timeline  
SingularityNET 
SingularityNET Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in SingularityNET are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, SingularityNET sustained solid returns over the last few months and may actually be approaching a breakup point.

SingularityNET Price Channel

XRP 
XRP Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in XRP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, XRP sustained solid returns over the last few months and may actually be approaching a breakup point.

XRP Price Channel

SingularityNET and XRP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SingularityNET and XRP

The main advantage of trading using opposite SingularityNET and XRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SingularityNET position performs unexpectedly, XRP 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 XRP will offset losses from the drop in XRP's long position.
SingularityNET vs. XRP
SingularityNET vs. Solana
SingularityNET vs. Polygon
SingularityNET vs. Chainlink
The idea behind SingularityNET and XRP 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.
XRP vs. Solana
XRP vs. Polygon
XRP vs. Chainlink
XRP vs. Polkadot
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go