Correlation Between 1inch and My Neighbor

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Can any of the company-specific risk be diversified away by investing in both 1inch and My Neighbor 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 1inch and My Neighbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1inch and My Neighbor Alice, you can compare the effects of market volatilities on 1inch and My Neighbor 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 1inch with a short position of My Neighbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1inch and My Neighbor.

Diversification Opportunities for 1inch and My Neighbor

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between 1inch and ALICE is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding 1inch and My Neighbor Alice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Neighbor Alice and 1inch 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 1inch are associated (or correlated) with My Neighbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Neighbor Alice has no effect on the direction of 1inch i.e., 1inch and My Neighbor go up and down completely randomly.

Pair Corralation between 1inch and My Neighbor

If you would invest  0.00  in My Neighbor Alice on April 1, 2022 and sell it today you would earn a total of  0.00  from holding My Neighbor Alice or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy0.55%
ValuesDaily Returns

1inch  vs.  My Neighbor Alice

 Performance (%) 
      Timeline 
1inch 
1inch Performance
0 of 100
Over the last 90 days 1inch has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's fundamental indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for 1inch investors.
My Neighbor Alice 
ALICE Performance
0 of 100
Over the last 90 days My Neighbor Alice has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's fundamental indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for My Neighbor Alice investors.

1inch and My Neighbor Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with 1inch and My Neighbor

The main advantage of trading using opposite 1inch and My Neighbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1inch position performs unexpectedly, My Neighbor 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 My Neighbor will offset losses from the drop in My Neighbor's long position.

1inch

Pair trading matchups for 1inch

Cia DE vs. 1inch
Pacific Gas vs. 1inch
Salesforce vs. 1inch
GM vs. 1inch
Brenmiller Energy vs. 1inch
Otp Bank vs. 1inch
Alphabet vs. 1inch
Ford vs. 1inch
Vmware vs. 1inch
Visa vs. 1inch
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against 1inch as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. 1inch's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, 1inch's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to 1inch.
The idea behind 1inch and My Neighbor Alice 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.

My Neighbor Alice

Pair trading matchups for My Neighbor

Ford vs. My Neighbor
Citigroup vs. My Neighbor
Alphabet vs. My Neighbor
Visa vs. My Neighbor
Brenmiller Energy vs. My Neighbor
Otp Bank vs. My Neighbor
Salesforce vs. My Neighbor
Pacific Gas vs. My Neighbor
Pennantpark Investme vs. My Neighbor
Dupont Denemours vs. My Neighbor
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against My Neighbor as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. My Neighbor's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, My Neighbor's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to My Neighbor Alice.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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