Correlation Between Algorand and Nanjing Canatal

Can any of the company-specific risk be diversified away by investing in both Algorand and Nanjing Canatal 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 Algorand and Nanjing Canatal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Algorand and Nanjing Canatal Data, you can compare the effects of market volatilities on Algorand and Nanjing Canatal 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 Algorand with a short position of Nanjing Canatal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algorand and Nanjing Canatal.

Diversification Opportunities for Algorand and Nanjing Canatal

-0.81

Correlation Coefficient

Algorand  Nanjing Canatal

Pay attention - limited upside

The 3 months correlation between Algorand and Nanjing is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Algorand and Nanjing Canatal Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Canatal Data and Algorand 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 Algorand are associated (or correlated) with Nanjing Canatal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Canatal Data has no effect on the direction of Algorand i.e., Algorand and Nanjing Canatal go up and down completely randomly.

Pair Corralation between Algorand and Nanjing Canatal

Assuming the 90 days trading horizon Algorand is expected to under-perform the Nanjing Canatal. In addition to that, Algorand is 1.6 times more volatile than Nanjing Canatal Data. It trades about -0.1 of its total potential returns per unit of risk. Nanjing Canatal Data is currently generating about 0.12 per unit of volatility. If you would invest  831.00  in Nanjing Canatal Data on December 25, 2024 and sell it today you would earn a total of  217.00  from holding Nanjing Canatal Data or generate 26.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	90.48%
Values	Daily Returns

Algorand  vs.  Nanjing Canatal Data

Algorand

Risk-Adjusted Performance

Very Weak

Over the last 90 days Algorand has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Algorand shareholders.

Nanjing Canatal Data

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nanjing Canatal Data are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nanjing Canatal sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Algorand and Nanjing Canatal

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

The idea behind Algorand and Nanjing Canatal Data 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.