Correlation Between FTX Token and SingularityNET

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

Diversification Opportunities for FTX Token and SingularityNET

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between FTX Token and SingularityNET is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and SingularityNET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SingularityNET and FTX Token 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 FTX Token are associated (or correlated) with SingularityNET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SingularityNET has no effect on the direction of FTX Token i.e., FTX Token and SingularityNET go up and down completely randomly.

Pair Corralation between FTX Token and SingularityNET

Assuming the 90 days trading horizon FTX Token is expected to under-perform the SingularityNET. But the crypto coin apears to be less risky and, when comparing its historical volatility, FTX Token is 3.85 times less risky than SingularityNET. The crypto coin trades about -0.06 of its potential returns per unit of risk. The SingularityNET is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  4.00  in SingularityNET on June 26, 2022 and sell it today you would earn a total of  1.44  from holding SingularityNET or generate 36.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy47.05%
ValuesDaily Returns

FTX Token  vs.  SingularityNET

 Performance (%) 
       Timeline  
FTX Token 
FTX Token Performance
0 of 100
Over the last 90 days FTX Token has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, FTX Token is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

FTX Token Price Channel

SingularityNET 
SingularityNET Performance
0 of 100
Over the last 90 days SingularityNET has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak technical and fundamental indicators, SingularityNET sustained solid returns over the last few months and may actually be approaching a breakup point.

FTX Token and SingularityNET Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTX Token and SingularityNET

The main advantage of trading using opposite FTX Token and SingularityNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, SingularityNET 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 SingularityNET will offset losses from the drop in SingularityNET's long position.
FTX Token vs. XRP
FTX Token vs. Solana
FTX Token vs. Polkadot
FTX Token vs. Polygon
The idea behind FTX Token and SingularityNET 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.
SingularityNET vs. XRP
SingularityNET vs. Solana
SingularityNET vs. Polkadot
SingularityNET 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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