Correlation Between Capital Clean and Grayscale Decentralized

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

By analyzing existing cross correlation between Capital Clean Energy and Grayscale Decentralized Finance, you can compare the effects of market volatilities on Capital Clean and Grayscale Decentralized 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 Capital Clean with a short position of Grayscale Decentralized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Grayscale Decentralized.

Diversification Opportunities for Capital Clean and Grayscale Decentralized

-0.54

Correlation Coefficient

Capital Clean  Grayscale Decentralized

Excellent diversification

The 3 months correlation between Capital and Grayscale is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Grayscale Decentralized Financ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Decentralized and Capital Clean 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 Capital Clean Energy are associated (or correlated) with Grayscale Decentralized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Decentralized has no effect on the direction of Capital Clean i.e., Capital Clean and Grayscale Decentralized go up and down completely randomly.

Pair Corralation between Capital Clean and Grayscale Decentralized

Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.19 times more return on investment than Grayscale Decentralized. However, Capital Clean Energy is 5.35 times less risky than Grayscale Decentralized. It trades about 0.09 of its potential returns per unit of risk. Grayscale Decentralized Finance is currently generating about -0.11 per unit of risk. If you would invest  1,813  in Capital Clean Energy on December 21, 2024 and sell it today you would earn a total of  150.00  from holding Capital Clean Energy or generate 8.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Capital Clean Energy  vs.  Grayscale Decentralized Financ

Capital Clean Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Capital Clean Energy are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Capital Clean may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Grayscale Decentralized

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grayscale Decentralized Finance 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 technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Capital Clean and Grayscale Decentralized

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

The idea behind Capital Clean Energy and Grayscale Decentralized Finance 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 the Fundamental Analysis module to view fundamental data based on most recent published financial statements.