Correlation Between Adshares and Anchor Protocol

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

Diversification Opportunities for Adshares and Anchor Protocol

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Adshares and Anchor is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Adshares and Anchor Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Protocol and Adshares 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 Adshares 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 Adshares i.e., Adshares and Anchor Protocol go up and down completely randomly.

Pair Corralation between Adshares and Anchor Protocol

Assuming the 90 days trading horizon Adshares is expected to generate 0.29 times more return on investment than Anchor Protocol. However, Adshares is 3.48 times less risky than Anchor Protocol. It trades about -0.17 of its potential returns per unit of risk. Anchor Protocol is currently generating about -0.1 per unit of risk. If you would invest  242.00  in Adshares on March 29, 2022 and sell it today you would lose (41.00)  from holding Adshares or give up 16.94% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Adshares  vs.  Anchor Protocol

 Performance (%) 
      Timeline 
Adshares 
Adshares Performance
0 of 100
Over the last 90 days Adshares 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 Adshares investors.

Adshares Price Channel

Anchor Protocol 
Anchor Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Anchor Protocol are ranked lower than 2 (%) 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

Adshares and Anchor Protocol Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Adshares and Anchor Protocol

The main advantage of trading using opposite Adshares and Anchor Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adshares 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 Adshares 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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