Correlation Between Central Puerto and ApeCoin

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

Diversification Opportunities for Central Puerto and ApeCoin

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Central and ApeCoin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Central Puerto SA and ApeCoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ApeCoin and Central Puerto 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 Central Puerto SA are associated (or correlated) with ApeCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ApeCoin has no effect on the direction of Central Puerto i.e., Central Puerto and ApeCoin go up and down completely randomly.

Pair Corralation between Central Puerto and ApeCoin

Given the investment horizon of 90 days Central Puerto is expected to generate 10.57 times less return on investment than ApeCoin. But when comparing it to its historical volatility, Central Puerto SA is 13.1 times less risky than ApeCoin. It trades about 0.05 of its potential returns per unit of risk. ApeCoin is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.00  in ApeCoin on August 30, 2022 and sell it today you would earn a total of  356.00  from holding ApeCoin or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy96.69%
ValuesDaily Returns

Central Puerto SA  vs.  ApeCoin

 Performance (%) 
       Timeline  
Central Puerto SA 
Central Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Central Puerto SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Central Puerto unveiled solid returns over the last few months and may actually be approaching a breakup point.

Central Price Channel

ApeCoin 
ApeCoin Performance
0 of 100
Over the last 90 days ApeCoin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ApeCoin investors.

ApeCoin Price Channel

Central Puerto and ApeCoin Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Central Puerto and ApeCoin

The main advantage of trading using opposite Central Puerto and ApeCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Puerto position performs unexpectedly, ApeCoin 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 ApeCoin will offset losses from the drop in ApeCoin's long position.
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The idea behind Central Puerto SA and ApeCoin 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.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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