Correlation Between USD Coin and Coin98

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Can any of the company-specific risk be diversified away by investing in both USD Coin and Coin98 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 Coin98 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USD Coin and Coin98, you can compare the effects of market volatilities on USD Coin and Coin98 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 Coin98. Check out your portfolio center. Please also check ongoing floating volatility patterns of USD Coin and Coin98.

Diversification Opportunities for USD Coin and Coin98

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between USD Coin and Coin98 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding USD Coin and Coin98 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin98 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 Coin98. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin98 has no effect on the direction of USD Coin i.e., USD Coin and Coin98 go up and down completely randomly.

Pair Corralation between USD Coin and Coin98

If you would invest  56.00  in Coin98 on March 28, 2022 and sell it today you would lose (3.00)  from holding Coin98 or give up 5.36% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy90.91%
ValuesDaily Returns

USD Coin  vs.  Coin98

 Performance (%) 
      Timeline 
USD Coin 
USD Coin Performance
0 of 100
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

Coin98 
Coin98 Performance
0 of 100
Over the last 90 days Coin98 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 Coin98 investors.

Coin98 Price Channel

USD Coin and Coin98 Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with USD Coin and Coin98

The main advantage of trading using opposite USD Coin and Coin98 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USD Coin position performs unexpectedly, Coin98 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 Coin98 will offset losses from the drop in Coin98's long position.
The idea behind USD Coin and Coin98 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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