Correlation Between ABBC Coin and Anchor Protocol

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

Diversification Opportunities for ABBC Coin and Anchor Protocol

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between ABBC Coin and Anchor is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ABBC Coin and Anchor Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Protocol and ABBC Coin 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 ABBC Coin are associated (or correlated) with Anchor Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Protocol has no effect on the direction of ABBC Coin i.e., ABBC Coin and Anchor Protocol go up and down completely randomly.

Pair Corralation between ABBC Coin and Anchor Protocol

Assuming the 90 days trading horizon ABBC Coin is expected to under-perform the Anchor Protocol. But the crypto coin apears to be less risky and, when comparing its historical volatility, ABBC Coin is 3.07 times less risky than Anchor Protocol. The crypto coin trades about -0.24 of its potential returns per unit of risk. The Anchor Protocol is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Anchor Protocol on April 8, 2022 and sell it today you would earn a total of  3.00  from holding Anchor Protocol or generate 27.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

ABBC Coin  vs.  Anchor Protocol

 Performance (%) 
      Timeline 
ABBC Coin 
ABBC Coin Performance
0 of 100
Over the last 90 days ABBC Coin 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 drivers 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 ABBC Coin investors.

ABBC Coin Price Channel

Anchor Protocol 
Anchor Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Anchor Protocol are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Anchor Protocol sustained solid returns over the last few months and may actually be approaching a breakup point.

Anchor Price Channel

ABBC Coin and Anchor Protocol Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with ABBC Coin and Anchor Protocol

The main advantage of trading using opposite ABBC Coin and Anchor Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABBC Coin position performs unexpectedly, Anchor Protocol 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 Anchor Protocol will offset losses from the drop in Anchor Protocol's long position.
The idea behind ABBC Coin and Anchor Protocol 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 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

Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go