Correlation Between Creditcoin and Monero

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

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

Diversification Opportunities for Creditcoin and Monero

0.82

Correlation Coefficient

Creditcoin  Monero

Very poor diversification

The 3 months correlation between Creditcoin and Monero is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Creditcoin and Monero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monero and Creditcoin 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 Creditcoin are associated (or correlated) with Monero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monero has no effect on the direction of Creditcoin i.e., Creditcoin and Monero go up and down completely randomly.

Pair Corralation between Creditcoin and Monero

Assuming the 90 days trading horizon Creditcoin is expected to under-perform the Monero. In addition to that, Creditcoin is 1.59 times more volatile than Monero. It trades about 0.0 of its total potential returns per unit of risk. Monero is currently generating about 0.11 per unit of volatility. If you would invest  17,954  in Monero on October 9, 2024 and sell it today you would earn a total of  1,376  from holding Monero or generate 7.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Creditcoin  vs.  Monero

Creditcoin

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Creditcoin are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Creditcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Monero

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Monero are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Monero exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Creditcoin and Monero

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

The idea behind Creditcoin and Monero 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.