Correlation Between Axie Infinity and Celo

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

Diversification Opportunities for Axie Infinity and Celo

0.98
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Axie Infinity and Celo is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Axie Infinity Shards and Celo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celo and Axie Infinity 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 Axie Infinity Shards are associated (or correlated) with Celo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celo has no effect on the direction of Axie Infinity i.e., Axie Infinity and Celo go up and down completely randomly.

Pair Corralation between Axie Infinity and Celo

If you would invest  0.00  in Celo on April 1, 2022 and sell it today you would earn a total of  0.00  from holding Celo or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy0.0%
ValuesDaily Returns

Axie Infinity Shards  vs.  Celo

 Performance (%) 
      Timeline 
Axie Infinity Shards 
Axie Infinity Performance
0 of 100
Over the last 90 days Axie Infinity Shards has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for Axie Infinity Shards investors.
Celo 
Celo Performance
0 of 100
Over the last 90 days Celo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's essential indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for Celo investors.

Axie Infinity and Celo Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Axie Infinity and Celo

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

Axie Infinity Shards

Pair trading matchups for Axie Infinity

Ford vs. Axie Infinity
Alphabet vs. Axie Infinity
Twitter vs. Axie Infinity
Otp Bank vs. Axie Infinity
Dupont Denemours vs. Axie Infinity
Visa vs. Axie Infinity
Sentinelone Inc vs. Axie Infinity
Citigroup vs. Axie Infinity
Vmware vs. Axie Infinity
Cleveland Cliffs vs. Axie Infinity
Salesforce vs. Axie Infinity
Pennantpark Investme vs. Axie Infinity
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Axie Infinity as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Axie Infinity's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Axie Infinity's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Axie Infinity Shards.
The idea behind Axie Infinity Shards and Celo 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.

Celo

Pair trading matchups for Celo

Salesforce vs. Celo
Cia DE vs. Celo
Ford vs. Celo
Dupont Denemours vs. Celo
Sentinelone Inc vs. Celo
Citigroup vs. Celo
Visa vs. Celo
Cleveland Cliffs vs. Celo
Otp Bank vs. Celo
Vmware vs. Celo
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Celo as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Celo's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Celo's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Celo.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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