Correlation Between Stratis and Cardano

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

Diversification Opportunities for Stratis and Cardano

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Stratis and Cardano is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Stratis and Cardano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardano and Stratis 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 Stratis are associated (or correlated) with Cardano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardano has no effect on the direction of Stratis i.e., Stratis and Cardano go up and down completely randomly.

Pair Corralation between Stratis and Cardano

Assuming the 90 days trading horizon Stratis is expected to under-perform the Cardano. But the crypto coin apears to be less risky and, when comparing its historical volatility, Stratis is 1.19 times less risky than Cardano. The crypto coin trades about -0.12 of its potential returns per unit of risk. The Cardano is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  45.00  in Cardano on June 27, 2022 and sell it today you would earn a total of  2.00  from holding Cardano or generate 4.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Stratis  vs.  Cardano

 Performance (%) 
       Timeline  
Stratis 
Stratis Performance
0 of 100
Over the last 90 days Stratis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for Stratis investors.

Stratis Price Channel

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

Cardano Price Channel

Stratis and Cardano Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stratis and Cardano

The main advantage of trading using opposite Stratis and Cardano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratis position performs unexpectedly, Cardano 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 Cardano will offset losses from the drop in Cardano's long position.
Stratis vs. Ethereum
Stratis vs. Cardano
Stratis vs. Avalanche
Stratis vs. Cosmos
The idea behind Stratis and Cardano 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.
Cardano vs. Ethereum
Cardano vs. Avalanche
Cardano vs. Cosmos
Cardano vs. Near
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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