Correlation Between Pirate Chain and PancakeSwap

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

Diversification Opportunities for Pirate Chain and PancakeSwap

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Pirate and PancakeSwap is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pirate Chain and PancakeSwap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PancakeSwap and Pirate 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 Pirate Chain are associated (or correlated) with PancakeSwap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PancakeSwap has no effect on the direction of Pirate Chain i.e., Pirate Chain and PancakeSwap go up and down completely randomly.

Pair Corralation between Pirate Chain and PancakeSwap

Assuming the 90 days trading horizon Pirate Chain is expected to under-perform the PancakeSwap. But the crypto coin apears to be less risky and, when comparing its historical volatility, Pirate Chain is 1.09 times less risky than PancakeSwap. The crypto coin trades about -0.34 of its potential returns per unit of risk. The PancakeSwap is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest  827.00  in PancakeSwap on March 28, 2022 and sell it today you would lose (491.00)  from holding PancakeSwap or give up 59.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy97.73%
ValuesDaily Returns

Pirate Chain  vs.  PancakeSwap

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

Pirate Price Channel

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

PancakeSwap Price Channel

Pirate Chain and PancakeSwap Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Pirate Chain and PancakeSwap

The main advantage of trading using opposite Pirate Chain and PancakeSwap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pirate Chain position performs unexpectedly, PancakeSwap 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 PancakeSwap will offset losses from the drop in PancakeSwap's long position.

Pirate Chain

Pair trading matchups for Pirate Chain

The idea behind Pirate Chain and PancakeSwap 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 Bond Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
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 Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
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