Correlation Between ARPA Chain and Bitcoin Cash

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

Diversification Opportunities for ARPA Chain and Bitcoin Cash

0.88
  Correlation Coefficient

Very poor diversification

The 3 months correlation between ARPA Chain and Bitcoin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ARPA Chain and Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Cash and ARPA Chain 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 ARPA Chain are associated (or correlated) with Bitcoin Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Cash has no effect on the direction of ARPA Chain i.e., ARPA Chain and Bitcoin Cash go up and down completely randomly.

Pair Corralation between ARPA Chain and Bitcoin Cash

Assuming the 90 days trading horizon ARPA Chain is expected to generate 1.42 times more return on investment than Bitcoin Cash. However, ARPA Chain is 1.42 times more volatile than Bitcoin Cash. It trades about 0.03 of its potential returns per unit of risk. Bitcoin Cash is currently generating about -0.31 per unit of risk. If you would invest  3.81  in ARPA Chain on April 8, 2022 and sell it today you would lose (0.13)  from holding ARPA Chain or give up 3.41% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

ARPA Chain  vs.  Bitcoin Cash

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

ARPA Chain Price Channel

Bitcoin Cash 
Bitcoin Performance
0 of 100
Over the last 90 days Bitcoin Cash 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 Bitcoin Cash investors.

Bitcoin Price Channel

ARPA Chain and Bitcoin Cash Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with ARPA Chain and Bitcoin Cash

The main advantage of trading using opposite ARPA Chain and Bitcoin Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARPA Chain position performs unexpectedly, Bitcoin Cash 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 Bitcoin Cash will offset losses from the drop in Bitcoin Cash's long position.
The idea behind ARPA Chain and Bitcoin Cash 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
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
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go