Correlation Between Alephim and Coin98

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Alephim and Coin98 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 Coin98 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alephim and Coin98, you can compare the effects of market volatilities on Alephim and Coin98 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 Coin98. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alephim and Coin98.

Diversification Opportunities for Alephim and Coin98

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Alephim and Coin98 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aleph.im and Coin98 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin98 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 Coin98. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin98 has no effect on the direction of Alephim i.e., Alephim and Coin98 go up and down completely randomly.

Pair Corralation between Alephim and Coin98

Assuming the 90 days trading horizon Alephim is expected to generate 10.47 times more return on investment than Coin98. However, Alephim is 10.47 times more volatile than Coin98. It trades about 0.07 of its potential returns per unit of risk. Coin98 is currently generating about -0.11 per unit of risk. If you would invest  62.00  in Alephim on April 2, 2022 and sell it today you would lose (36.00)  from holding Alephim or give up 58.06% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aleph.im  vs.  Coin98

 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

Coin98 
Coin98 Performance
0 of 100
Over the last 90 days Coin98 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 Coin98 investors.

Coin98 Price Channel

Alephim and Coin98 Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alephim and Coin98

The main advantage of trading using opposite Alephim and Coin98 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alephim position performs unexpectedly, Coin98 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 Coin98 will offset losses from the drop in Coin98's long position.
The idea behind Alephim and Coin98 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 Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go