Correlation Between Polygon and SingularityNET

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

Diversification Opportunities for Polygon and SingularityNET

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Polygon and SingularityNET is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Polygon and SingularityNET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SingularityNET and Polygon 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 Polygon 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 Polygon i.e., Polygon and SingularityNET go up and down completely randomly.

Pair Corralation between Polygon and SingularityNET

Assuming the 90 days trading horizon Polygon is expected to generate 1.63 times more return on investment than SingularityNET. However, Polygon is 1.63 times more volatile than SingularityNET. It trades about 0.04 of its potential returns per unit of risk. SingularityNET is currently generating about -0.08 per unit of risk. If you would invest  87.00  in Polygon on August 31, 2022 and sell it today you would lose (3.00)  from holding Polygon or give up 3.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Polygon  vs.  SingularityNET

 Performance (%) 
       Timeline  
Polygon 
Polygon Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Polygon are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Polygon sustained solid returns over the last few months and may actually be approaching a breakup point.

Polygon Price Channel

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

SingularityNET Price Channel

Polygon and SingularityNET Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Polygon and SingularityNET

The main advantage of trading using opposite Polygon and SingularityNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon 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.
Polygon vs. XRP
Polygon vs. Solana
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Polygon vs. Polkadot
The idea behind Polygon 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. Polygon
SingularityNET 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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