Correlation Between Ankr Network and Solana

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

Diversification Opportunities for Ankr Network and Solana

0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Ankr Network and Solana is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ankr Network and Solana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solana and Ankr Network 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 Ankr Network are associated (or correlated) with Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solana has no effect on the direction of Ankr Network i.e., Ankr Network and Solana go up and down completely randomly.

Pair Corralation between Ankr Network and Solana

Assuming the 90 days trading horizon Ankr Network is expected to generate 1.26 times more return on investment than Solana. However, Ankr Network is 1.26 times more volatile than Solana. It trades about -0.02 of its potential returns per unit of risk. Solana is currently generating about -0.08 per unit of risk. If you would invest  9.38  in Ankr Network on July 6, 2022 and sell it today you would lose (6.33)  from holding Ankr Network or give up 67.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ankr Network  vs.  Solana

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

Ankr Network Price Channel

Solana 
Solana Performance
0 of 100
Over the last 90 days Solana 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 Solana investors.

Solana Price Channel

Ankr Network and Solana Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ankr Network and Solana

The main advantage of trading using opposite Ankr Network and Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankr Network position performs unexpectedly, Solana 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 Solana will offset losses from the drop in Solana's long position.
Ankr Network vs. XRP
Ankr Network vs. Solana
Ankr Network vs. Polkadot
Ankr Network vs. Chainlink
The idea behind Ankr Network and Solana 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.
Solana vs. XRP
Solana vs. Polkadot
Solana vs. Chainlink
Solana 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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