Correlation Between ARK and Biconomy

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

Diversification Opportunities for ARK and Biconomy

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ARK and Biconomy is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ARK and Biconomy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biconomy and ARK 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 ARK 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 ARK i.e., ARK and Biconomy go up and down completely randomly.

Pair Corralation between ARK and Biconomy

Assuming the 90 days trading horizon ARK is expected to under-perform the Biconomy. In addition to that, ARK is 1.57 times more volatile than Biconomy. It trades about -0.23 of its total potential returns per unit of risk. Biconomy is currently generating about -0.25 per unit of volatility. If you would invest  73.00  in Biconomy on April 1, 2022 and sell it today you would lose (19.00)  from holding Biconomy or give up 26.03% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ARK  vs.  Biconomy

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

ARK 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

ARK and Biconomy Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with ARK and Biconomy

The main advantage of trading using opposite ARK and Biconomy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARK 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 ARK 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go