Correlation Between Stargate Finance and Render Network

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

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

Diversification Opportunities for Stargate Finance and Render Network

0.8

Correlation Coefficient

Stargate Finance  Render Network

Very poor diversification

The 3 months correlation between Stargate and Render is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Stargate Finance and Render Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Render Network and Stargate Finance 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 Stargate Finance are associated (or correlated) with Render Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Render Network has no effect on the direction of Stargate Finance i.e., Stargate Finance and Render Network go up and down completely randomly.

Pair Corralation between Stargate Finance and Render Network

Assuming the 90 days trading horizon Stargate Finance is expected to generate 1.6 times less return on investment than Render Network. But when comparing it to its historical volatility, Stargate Finance is 1.17 times less risky than Render Network. It trades about 0.12 of its potential returns per unit of risk. Render Network is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  492.00  in Render Network on September 3, 2024 and sell it today you would earn a total of  398.00  from holding Render Network or generate 80.89% return on investment over 90 days.

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

Stargate Finance  vs.  Render Network

Stargate Finance

Risk-Adjusted Performance

9 of 100

OK

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

Render Network

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Render Network are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Render Network sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stargate Finance and Render Network

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

The idea behind Stargate Finance and Render Network 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.