Correlation Between Chainlink and Stellar

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

Diversification Opportunities for Chainlink and Stellar

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between Chainlink and Stellar is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and Stellar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellar 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 Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellar has no effect on the direction of Chainlink i.e., Chainlink and Stellar go up and down completely randomly.

Pair Corralation between Chainlink and Stellar

Assuming the 90 days trading horizon Chainlink is expected to generate 1.09 times more return on investment than Stellar. However, Chainlink is 1.09 times more volatile than Stellar. It trades about 0.11 of its potential returns per unit of risk. Stellar is currently generating about 0.0 per unit of risk. If you would invest  703.00  in Chainlink on May 11, 2022 and sell it today you would earn a total of  173.00  from holding Chainlink or generate 24.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Chainlink  vs.  Stellar

 Performance (%) 
       Timeline  
Chainlink 
Chainlink Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 7 (%) 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

Stellar 
Stellar Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Stellar are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Stellar may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Stellar Price Channel

Chainlink and Stellar Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chainlink and Stellar

The main advantage of trading using opposite Chainlink and Stellar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainlink position performs unexpectedly, Stellar 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 Stellar will offset losses from the drop in Stellar's long position.
The idea behind Chainlink and Stellar 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

Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go