Correlation Between Alephim and Biconomy

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

Diversification Opportunities for Alephim and Biconomy

-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Alephim and Biconomy is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aleph.im and Biconomy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biconomy and Alephim 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 Alephim are associated (or correlated) with Biconomy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biconomy has no effect on the direction of Alephim i.e., Alephim and Biconomy go up and down completely randomly.

Pair Corralation between Alephim and Biconomy

Assuming the 90 days trading horizon Alephim is expected to generate 1.11 times less return on investment than Biconomy. In addition to that, Alephim is 1.01 times more volatile than Biconomy. It trades about 0.14 of its total potential returns per unit of risk. Biconomy is currently generating about 0.15 per unit of volatility. If you would invest  0.00  in Biconomy on April 6, 2022 and sell it today you would earn a total of  49.00  from holding Biconomy or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aleph.im  vs.  Biconomy

 Performance (%) 
      Timeline 
Alephim 
Alephim Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Alephim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Alephim sustained solid returns over the last few months and may actually be approaching a breakup point.

Alephim Price Channel

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

Biconomy Price Channel

Alephim and Biconomy Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alephim and Biconomy

The main advantage of trading using opposite Alephim and Biconomy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alephim position performs unexpectedly, Biconomy 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 Biconomy will offset losses from the drop in Biconomy's long position.
The idea behind Alephim and Biconomy 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go