Correlation Between Chainlink and Adshares

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

Diversification Opportunities for Chainlink and Adshares

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Chainlink and Adshares is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and Adshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adshares and Chainlink 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 Chainlink are associated (or correlated) with Adshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adshares has no effect on the direction of Chainlink i.e., Chainlink and Adshares go up and down completely randomly.

Pair Corralation between Chainlink and Adshares

Assuming the 90 days trading horizon Chainlink is expected to under-perform the Adshares. But the crypto coin apears to be less risky and, when comparing its historical volatility, Chainlink is 1.87 times less risky than Adshares. The crypto coin trades about -0.05 of its potential returns per unit of risk. The Adshares is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  6.38  in Adshares on August 28, 2022 and sell it today you would earn a total of  136.62  from holding Adshares or generate 2141.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy58.3%
ValuesDaily Returns

Chainlink  vs.  Adshares

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

Chainlink Price Channel

Adshares 
Adshares Performance
0 of 100
Over the last 90 days Adshares 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 fundamental indicators remain somewhat strong which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long term up-swing for Adshares investors.

Adshares Price Channel

Chainlink and Adshares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chainlink and Adshares

The main advantage of trading using opposite Chainlink and Adshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainlink position performs unexpectedly, Adshares 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 Adshares will offset losses from the drop in Adshares' long position.
Chainlink vs. XRP
Chainlink vs. Solana
Chainlink vs. Polygon
Chainlink vs. Polkadot
The idea behind Chainlink and Adshares 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.
Adshares vs. XRP
Adshares vs. Solana
Adshares vs. Polygon
Adshares vs. Chainlink
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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