Correlation Between Stratis and Cronos

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

Diversification Opportunities for Stratis and Cronos

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Stratis and Cronos is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Stratis and Cronos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos 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 Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos has no effect on the direction of Stratis i.e., Stratis and Cronos go up and down completely randomly.

Pair Corralation between Stratis and Cronos

Assuming the 90 days trading horizon Stratis is expected to generate 0.75 times more return on investment than Cronos. However, Stratis is 1.33 times less risky than Cronos. It trades about 0.0 of its potential returns per unit of risk. Cronos is currently generating about -0.21 per unit of risk. If you would invest  50.00  in Stratis on September 6, 2022 and sell it today you would lose (2.00)  from holding Stratis or give up 4.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Stratis  vs.  Cronos

 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 somewhat strong basic indicators, Stratis is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Stratis Price Channel

Cronos 
Cronos Performance
0 of 100
Over the last 90 days Cronos 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 January 2023. The current disturbance may also be a sign of long term up-swing for Cronos investors.

Cronos Price Channel

Stratis and Cronos Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stratis and Cronos

The main advantage of trading using opposite Stratis and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratis position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' long position.
Stratis vs. Ethereum
Stratis vs. Cardano
Stratis vs. Avalanche
Stratis vs. Cosmos
The idea behind Stratis and Cronos 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.
Cronos vs. Ethereum
Cronos vs. XRP
Cronos vs. Cardano
Cronos 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go