Correlation Between AirSwap and Bitcoin SV

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

Diversification Opportunities for AirSwap and Bitcoin SV

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between AirSwap and Bitcoin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AirSwap and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV and AirSwap 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 AirSwap are associated (or correlated) with Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of AirSwap i.e., AirSwap and Bitcoin SV go up and down completely randomly.

Pair Corralation between AirSwap and Bitcoin SV

Assuming the 90 days trading horizon AirSwap is expected to generate 2.03 times more return on investment than Bitcoin SV. However, AirSwap is 2.03 times more volatile than Bitcoin SV. It trades about 0.0 of its potential returns per unit of risk. Bitcoin SV is currently generating about -0.06 per unit of risk. If you would invest  12.00  in AirSwap on April 1, 2022 and sell it today you would lose (3.48)  from holding AirSwap or give up 29.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

AirSwap  vs.  Bitcoin SV

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

AirSwap Price Channel

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

Bitcoin Price Channel

AirSwap and Bitcoin SV Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with AirSwap and Bitcoin SV

The main advantage of trading using opposite AirSwap and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AirSwap position performs unexpectedly, Bitcoin SV 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 SV will offset losses from the drop in Bitcoin SV's long position.
The idea behind AirSwap and Bitcoin SV 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
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
Transaction History
View history of all your transactions and understand their impact on performance
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go