Correlation Between LEO Token and Chainlink

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

Diversification Opportunities for LEO Token and Chainlink

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between LEO Token and Chainlink is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding LEO Token and Chainlink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chainlink 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 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 LEO Token i.e., LEO Token and Chainlink go up and down completely randomly.

Pair Corralation between LEO Token and Chainlink

Assuming the 90 days trading horizon LEO Token is expected to under-perform the Chainlink. But the crypto coin apears to be less risky and, when comparing its historical volatility, LEO Token is 2.44 times less risky than Chainlink. The crypto coin trades about -0.01 of its potential returns per unit of risk. The Chainlink is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  771.00  in Chainlink on May 14, 2022 and sell it today you would earn a total of  157.00  from holding Chainlink or generate 20.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

LEO Token  vs.  Chainlink

 Performance (%) 
       Timeline  
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 somewhat strong technical and fundamental indicators, LEO Token is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

LEO Token Price Channel

Chainlink 
Chainlink Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 5 (%) 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

LEO Token and Chainlink Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with LEO Token and Chainlink

The main advantage of trading using opposite LEO Token and Chainlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEO Token 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 LEO Token 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go