Correlation Between My Neighbor and Ankr Network

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

Diversification Opportunities for My Neighbor and Ankr Network

0.99
  Correlation Coefficient

No risk reduction

The 3 months correlation between ALICE and Ankr Network is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding My Neighbor Alice and Ankr Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankr Network and My Neighbor 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 My Neighbor Alice are associated (or correlated) with Ankr Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankr Network has no effect on the direction of My Neighbor i.e., My Neighbor and Ankr Network go up and down completely randomly.

Pair Corralation between My Neighbor and Ankr Network

Assuming the 90 days trading horizon My Neighbor Alice is expected to generate 1.13 times more return on investment than Ankr Network. However, My Neighbor is 1.13 times more volatile than Ankr Network. It trades about -0.07 of its potential returns per unit of risk. Ankr Network is currently generating about -0.15 per unit of risk. If you would invest  281.00  in My Neighbor Alice on April 8, 2022 and sell it today you would lose (51.00)  from holding My Neighbor Alice or give up 18.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

My Neighbor Alice  vs.  Ankr Network

 Performance (%) 
      Timeline 
My Neighbor Alice 
ALICE Performance
0 of 100
Over the last 90 days My Neighbor Alice 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 August 2022. The current disturbance may also be a sign of long term up-swing for My Neighbor Alice investors.

ALICE Price Channel

Ankr Network 
Ankr Network Performance
0 of 100
Over the last 90 days Ankr Network 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 forward-looking signals 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 Ankr Network investors.

Ankr Network Price Channel

My Neighbor and Ankr Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with My Neighbor and Ankr Network

The main advantage of trading using opposite My Neighbor and Ankr Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Neighbor position performs unexpectedly, Ankr 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 Ankr Network will offset losses from the drop in Ankr Network's long position.
The idea behind My Neighbor Alice and Ankr 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go