Correlation Between Golem Network and Sui
Can any of the company-specific risk be diversified away by investing in both Golem Network and Sui 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 Golem Network and Sui into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golem Network Token and Sui, you can compare the effects of market volatilities on Golem Network and Sui 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 Golem Network with a short position of Sui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golem Network and Sui.
Diversification Opportunities for Golem Network and Sui
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golem and Sui is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Golem Network Token and Sui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sui and Golem Network 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 Golem Network Token are associated (or correlated) with Sui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sui has no effect on the direction of Golem Network i.e., Golem Network and Sui go up and down completely randomly.
Pair Corralation between Golem Network and Sui
Assuming the 90 days trading horizon Golem Network Token is expected to generate 0.89 times more return on investment than Sui. However, Golem Network Token is 1.12 times less risky than Sui. It trades about -0.06 of its potential returns per unit of risk. Sui is currently generating about -0.09 per unit of risk. If you would invest 37.00 in Golem Network Token on December 28, 2024 and sell it today you would lose (10.00) from holding Golem Network Token or give up 27.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Golem Network Token vs. Sui
Performance |
Timeline |
Golem Network Token |
Sui |
Golem Network and Sui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golem Network and Sui
The main advantage of trading using opposite Golem Network and Sui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golem Network position performs unexpectedly, Sui 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 Sui will offset losses from the drop in Sui's long position.Golem Network vs. Staked Ether | Golem Network vs. Phala Network | Golem Network vs. EigenLayer | Golem Network vs. EOSDAC |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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