Correlation Between USD Coin and Cosmos

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

Diversification Opportunities for USD Coin and Cosmos

0.0
  Correlation Coefficient

Pay attention - limited upside

The 24 months correlation between USD Coin and Cosmos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding USD Coin and Cosmos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos and USD Coin 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 USD Coin are associated (or correlated) with Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos has no effect on the direction of USD Coin i.e., USD Coin and Cosmos go up and down completely randomly.

Pair Corralation between USD Coin and Cosmos

If you would invest  100.00  in USD Coin on April 1, 2022 and sell it today you would earn a total of  0.00  from holding USD Coin or generate 0.0% return on investment over 90 days.
Time Period24 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

USD Coin  vs.  Cosmos

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

USD Coin Price Channel

Cosmos 
Cosmos Performance
0 of 100
Over the last 90 days Cosmos 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 July 2022. The current disturbance may also be a sign of long term up-swing for Cosmos investors.

Cosmos Price Channel

USD Coin and Cosmos Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with USD Coin and Cosmos

The main advantage of trading using opposite USD Coin and Cosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USD Coin position performs unexpectedly, Cosmos 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 Cosmos will offset losses from the drop in Cosmos' long position.
The idea behind USD Coin and Cosmos 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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