Correlation Between Gatechain Token and BAND
Can any of the company-specific risk be diversified away by investing in both Gatechain Token and BAND 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 Gatechain Token and BAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatechain Token and BAND, you can compare the effects of market volatilities on Gatechain Token and BAND 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 Gatechain Token with a short position of BAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatechain Token and BAND.
Diversification Opportunities for Gatechain Token and BAND
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gatechain and BAND is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gatechain Token and BAND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAND and Gatechain Token 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 Gatechain Token are associated (or correlated) with BAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAND has no effect on the direction of Gatechain Token i.e., Gatechain Token and BAND go up and down completely randomly.
Pair Corralation between Gatechain Token and BAND
Assuming the 90 days horizon Gatechain Token is expected to under-perform the BAND. But the crypto coin apears to be less risky and, when comparing its historical volatility, Gatechain Token is 3.1 times less risky than BAND. The crypto coin trades about -0.04 of its potential returns per unit of risk. The BAND is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 73.00 in BAND on June 8, 2025 and sell it today you would earn a total of 0.00 from holding BAND or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gatechain Token vs. BAND
Performance |
| Timeline |
| Gatechain Token |
| BAND |
Gatechain Token and BAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatechain Token and BAND
The main advantage of trading using opposite Gatechain Token and BAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatechain Token position performs unexpectedly, BAND 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 BAND will offset losses from the drop in BAND's long position.| Gatechain Token vs. Staked Ether | Gatechain Token vs. EigenLayer | Gatechain Token vs. EOSDAC | Gatechain Token vs. BLZ |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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