Correlation Between Dai and Chainlink

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dai and Chainlink 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 Dai and Chainlink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dai and Chainlink, you can compare the effects of market volatilities on Dai and Chainlink 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 Dai with a short position of Chainlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dai and Chainlink.

Diversification Opportunities for Dai and Chainlink

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Dai and Chainlink is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dai and Chainlink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chainlink and Dai 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 Dai are associated (or correlated) with Chainlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chainlink has no effect on the direction of Dai i.e., Dai and Chainlink go up and down completely randomly.

Pair Corralation between Dai and Chainlink

Assuming the 90 days trading horizon Dai is not expected to generate positive returns. However, Dai is 62.07 times less risky than Chainlink. It waists most of its returns potential to compensate for thr risk taken. Chainlink is generating about -0.07 per unit of risk. If you would invest  100.00  in Dai on May 9, 2022 and sell it today you would earn a total of  0.00  from holding Dai or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.09%
ValuesDaily Returns

Dai  vs.  Chainlink

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

Dai Price Channel

Chainlink 
Chainlink Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Chainlink may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Chainlink Price Channel

Dai and Chainlink Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dai and Chainlink

The main advantage of trading using opposite Dai and Chainlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dai position performs unexpectedly, Chainlink 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 Chainlink will offset losses from the drop in Chainlink's long position.
The idea behind Dai and Chainlink 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.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go