Correlation Between Aave and Boba Network

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aave and Boba Network 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 Aave and Boba Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aave and Boba Network, you can compare the effects of market volatilities on Aave and Boba Network 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 Aave with a short position of Boba Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aave and Boba Network.

Diversification Opportunities for Aave and Boba Network

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Aave and Boba Network is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aave and Boba Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boba Network and Aave 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 Aave are associated (or correlated) with Boba Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boba Network has no effect on the direction of Aave i.e., Aave and Boba Network go up and down completely randomly.

Pair Corralation between Aave and Boba Network

Assuming the 90 days trading horizon Aave is expected to under-perform the Boba Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, Aave is 15.77 times less risky than Boba Network. The crypto coin trades about -0.07 of its potential returns per unit of risk. The Boba Network is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Boba Network on April 7, 2022 and sell it today you would earn a total of  36.00  from holding Boba Network or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy32.97%
ValuesDaily Returns

Aave  vs.  Boba Network

 Performance (%) 
      Timeline 
Aave 
Aave Performance
0 of 100
Over the last 90 days Aave 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 basic indicators remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for Aave investors.

Aave Price Channel

Boba Network 
Boba Network Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Boba Network are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Boba Network sustained solid returns over the last few months and may actually be approaching a breakup point.

Boba Network Price Channel

Aave and Boba Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Aave and Boba Network

The main advantage of trading using opposite Aave and Boba Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aave position performs unexpectedly, Boba Network 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 Boba Network will offset losses from the drop in Boba Network's long position.
The idea behind Aave and Boba Network 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go