Correlation Between Cronos and PAXEX
Can any of the company-specific risk be diversified away by investing in both Cronos and PAXEX 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 Cronos and PAXEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cronos and PAXEX, you can compare the effects of market volatilities on Cronos and PAXEX 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 Cronos with a short position of PAXEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cronos and PAXEX.
Diversification Opportunities for Cronos and PAXEX
Pay attention - limited upside
The 3 months correlation between Cronos and PAXEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cronos and PAXEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAXEX and Cronos 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 Cronos are associated (or correlated) with PAXEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAXEX has no effect on the direction of Cronos i.e., Cronos and PAXEX go up and down completely randomly.
Pair Corralation between Cronos and PAXEX
If you would invest 13.00 in Cronos on July 20, 2025 and sell it today you would earn a total of 1.00 from holding Cronos or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cronos vs. PAXEX
Performance |
| Timeline |
| Cronos |
| PAXEX |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Cronos and PAXEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cronos and PAXEX
The main advantage of trading using opposite Cronos and PAXEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cronos position performs unexpectedly, PAXEX 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 PAXEX will offset losses from the drop in PAXEX's long position.The idea behind Cronos and PAXEX 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.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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |