Correlation Between Gatechain Token and XT Token
Can any of the company-specific risk be diversified away by investing in both Gatechain Token and XT Token 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 XT Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatechain Token and XT Token, you can compare the effects of market volatilities on Gatechain Token and XT Token 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 XT Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatechain Token and XT Token.
Diversification Opportunities for Gatechain Token and XT Token
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gatechain and XT Token is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gatechain Token and XT Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XT Token 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 XT Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XT Token has no effect on the direction of Gatechain Token i.e., Gatechain Token and XT Token go up and down completely randomly.
Pair Corralation between Gatechain Token and XT Token
Assuming the 90 days horizon Gatechain Token is expected to under-perform the XT Token. In addition to that, Gatechain Token is 1.16 times more volatile than XT Token. It trades about -0.21 of its total potential returns per unit of risk. XT Token is currently generating about 0.14 per unit of volatility. If you would invest 467.00 in XT Token on April 21, 2025 and sell it today you would earn a total of 82.00 from holding XT Token or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gatechain Token vs. XT Token
Performance |
| Timeline |
| Gatechain Token |
| XT Token |
Gatechain Token and XT Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatechain Token and XT Token
The main advantage of trading using opposite Gatechain Token and XT Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatechain Token position performs unexpectedly, XT Token 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 XT Token will offset losses from the drop in XT Token'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |