Correlation Between LEO Token and Beta Finance

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

Diversification Opportunities for LEO Token and Beta Finance

  Correlation Coefficient

Very weak diversification

The 3 months correlation between LEO Token and Beta Finance is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding LEO Token and Beta Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta Finance and LEO 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 LEO Token are associated (or correlated) with Beta Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta Finance has no effect on the direction of LEO Token i.e., LEO Token and Beta Finance go up and down completely randomly.

Pair Corralation between LEO Token and Beta Finance

Assuming the 90 days trading horizon LEO Token is expected to generate 0.53 times more return on investment than Beta Finance. However, LEO Token is 1.9 times less risky than Beta Finance. It trades about 0.02 of its potential returns per unit of risk. Beta Finance is currently generating about -0.03 per unit of risk. If you would invest  371.00  in LEO Token on September 5, 2022 and sell it today you would earn a total of  7.00  from holding LEO Token or generate 1.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

LEO Token  vs.  Beta Finance

 Performance (%) 
LEO Token 
LEO Token Performance
0 of 100
Over the last 90 days LEO Token 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 technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for LEO Token investors.

LEO Token Price Channel

Beta Finance 
Beta Finance Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Beta Finance are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Beta Finance sustained solid returns over the last few months and may actually be approaching a breakup point.

Beta Finance Price Channel

LEO Token and Beta Finance Volatility Contrast

   Predicted Return Density   

Pair Trading with LEO Token and Beta Finance

The main advantage of trading using opposite LEO Token and Beta Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEO Token position performs unexpectedly, Beta Finance 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 Beta Finance will offset losses from the drop in Beta Finance's long position.
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The idea behind LEO Token and Beta Finance 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.
Beta Finance vs. XRP
Beta Finance vs. Polygon
Beta Finance vs. Chainlink
Beta Finance vs. Solana
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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