Correlation Between Chia and PPL Capital

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Can any of the company-specific risk be diversified away by investing in both Chia and PPL Capital 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 Chia and PPL Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and PPL Capital Funding, you can compare the effects of market volatilities on Chia and PPL Capital 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 Chia with a short position of PPL Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and PPL Capital.

Diversification Opportunities for Chia and PPL Capital

ChiaPPLDiversified AwayChiaPPLDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Chia and PPL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chia and PPL Capital Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPL Capital Funding and Chia 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 Chia are associated (or correlated) with PPL Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPL Capital Funding has no effect on the direction of Chia i.e., Chia and PPL Capital go up and down completely randomly.

Pair Corralation between Chia and PPL Capital

If you would invest  1,418  in Chia on October 28, 2024 and sell it today you would earn a total of  475.00  from holding Chia or generate 33.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Chia  vs.  PPL Capital Funding

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 050100150
JavaScript chart by amCharts 3.21.15XCH PPX
       Timeline  
Chia 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Chia are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Chia exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1520253035
PPL Capital Funding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PPL Capital Funding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, PPL Capital is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Chia and PPL Capital Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-30.41-22.78-15.14-7.510.138.0116.0224.0332.04 0.0010.0020.0030.004
JavaScript chart by amCharts 3.21.15XCH PPX
       Returns  

Pair Trading with Chia and PPL Capital

The main advantage of trading using opposite Chia and PPL Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia position performs unexpectedly, PPL Capital 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 PPL Capital will offset losses from the drop in PPL Capital's long position.
The idea behind Chia and PPL Capital Funding 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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