Correlation Between 21Shares Polkadot and Maat Pharma

Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot and Maat Pharma 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 21Shares Polkadot and Maat Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 21Shares Polkadot ETP and Maat Pharma SA, you can compare the effects of market volatilities on 21Shares Polkadot and Maat Pharma 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 21Shares Polkadot with a short position of Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and Maat Pharma.

Diversification Opportunities for 21Shares Polkadot and Maat Pharma

0.89

Correlation Coefficient

21Shares Polkadot  Maat Pharma

Very poor diversification

The 3 months correlation between 21Shares and Maat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma SA and 21Shares Polkadot 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 21Shares Polkadot ETP are associated (or correlated) with Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and Maat Pharma go up and down completely randomly.

Pair Corralation between 21Shares Polkadot and Maat Pharma

Assuming the 90 days trading horizon 21Shares Polkadot ETP is expected to under-perform the Maat Pharma. In addition to that, 21Shares Polkadot is 1.92 times more volatile than Maat Pharma SA. It trades about -0.07 of its total potential returns per unit of risk. Maat Pharma SA is currently generating about -0.11 per unit of volatility. If you would invest  796.00  in Maat Pharma SA on December 31, 2024 and sell it today you would lose (186.00) from holding Maat Pharma SA or give up 23.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

21Shares Polkadot ETP  vs.  Maat Pharma SA

21Shares Polkadot ETP

Risk-Adjusted Performance

Very Weak

Over the last 90 days 21Shares Polkadot ETP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Maat Pharma SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maat Pharma SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with 21Shares Polkadot and Maat Pharma

The main advantage of trading using opposite 21Shares Polkadot and Maat Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, Maat Pharma 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 Maat Pharma will offset losses from the drop in Maat Pharma's long position.

The idea behind 21Shares Polkadot ETP and Maat Pharma SA 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.

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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 the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..