Correlation Between Hedera Hashgraph and SUPERC

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

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

Diversification Opportunities for Hedera Hashgraph and SUPERC

-0.45

Correlation Coefficient

Hedera Hashgraph  SUPERC

Very good diversification

The 3 months correlation between Hedera and SUPERC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and SUPERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPERC and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with SUPERC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPERC has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and SUPERC go up and down completely randomly.

Pair Corralation between Hedera Hashgraph and SUPERC

If you would invest  4.89  in Hedera Hashgraph on September 2, 2024 and sell it today you would earn a total of  12.11  from holding Hedera Hashgraph or generate 247.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.52%
Values	Daily Returns

Hedera Hashgraph  vs.  SUPERC

Hedera Hashgraph

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hedera Hashgraph are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hedera Hashgraph exhibited solid returns over the last few months and may actually be approaching a breakup point.

SUPERC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUPERC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SUPERC is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hedera Hashgraph and SUPERC

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

The idea behind Hedera Hashgraph and SUPERC 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.