Correlation Between Sui and ApeCoin

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

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

Diversification Opportunities for Sui and ApeCoin

0.79

Correlation Coefficient

Sui  ApeCoin

Poor diversification

The 3 months correlation between Sui and ApeCoin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sui and ApeCoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ApeCoin and Sui 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 Sui are associated (or correlated) with ApeCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ApeCoin has no effect on the direction of Sui i.e., Sui and ApeCoin go up and down completely randomly.

Pair Corralation between Sui and ApeCoin

Assuming the 90 days trading horizon Sui is expected to generate 0.99 times more return on investment than ApeCoin. However, Sui is 1.01 times less risky than ApeCoin. It trades about 0.16 of its potential returns per unit of risk. ApeCoin is currently generating about 0.05 per unit of risk. If you would invest  105.00  in Sui on September 1, 2024 and sell it today you would earn a total of  242.00  from holding Sui or generate 230.48% return on investment over 90 days.

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

Sui  vs.  ApeCoin

Sui

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Sui are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Sui exhibited solid returns over the last few months and may actually be approaching a breakup point.

ApeCoin

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ApeCoin are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ApeCoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sui and ApeCoin

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

The idea behind Sui and ApeCoin 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.