Correlation Between Automata and Alchemy Pay

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

Diversification Opportunities for Automata and Alchemy Pay

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Automata and Alchemy is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Automata and Alchemy Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alchemy Pay and Automata 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 Automata are associated (or correlated) with Alchemy Pay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alchemy Pay has no effect on the direction of Automata i.e., Automata and Alchemy Pay go up and down completely randomly.

Pair Corralation between Automata and Alchemy Pay

Assuming the 90 days trading horizon Automata is expected to generate 15.27 times more return on investment than Alchemy Pay. However, Automata is 15.27 times more volatile than Alchemy Pay. It trades about 0.11 of its potential returns per unit of risk. Alchemy Pay is currently generating about -0.12 per unit of risk. If you would invest  0.00  in Automata on April 2, 2022 and sell it today you would earn a total of  17.00  from holding Automata or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy55.04%
ValuesDaily Returns

Automata  vs.  Alchemy Pay

 Performance (%) 
      Timeline 
Automata 
Automata Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Automata are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Automata sustained solid returns over the last few months and may actually be approaching a breakup point.

Automata Price Channel

Alchemy Pay 
Alchemy Performance
0 of 100
Over the last 90 days Alchemy Pay 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 Alchemy Pay investors.

Alchemy Price Channel

Automata and Alchemy Pay Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Automata and Alchemy Pay

The main advantage of trading using opposite Automata and Alchemy Pay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automata position performs unexpectedly, Alchemy Pay 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 Alchemy Pay will offset losses from the drop in Alchemy Pay's long position.
The idea behind Automata and Alchemy Pay 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go