Correlation Between Automata and ApeCoin

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

Diversification Opportunities for Automata and ApeCoin

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Automata and ApeCoin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Automata and ApeCoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ApeCoin 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 ApeCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ApeCoin has no effect on the direction of Automata i.e., Automata and ApeCoin go up and down completely randomly.

Pair Corralation between Automata and ApeCoin

Assuming the 90 days trading horizon Automata is expected to generate 2.63 times more return on investment than ApeCoin. However, Automata is 2.63 times more volatile than ApeCoin. It trades about 0.11 of its potential returns per unit of risk. ApeCoin is currently generating about 0.04 per unit of risk. If you would invest  0.00  in Automata on April 8, 2022 and sell it today you would earn a total of  16.00  from holding Automata or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy14.42%
ValuesDaily Returns

Automata  vs.  ApeCoin

 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

ApeCoin 
ApeCoin Performance
0 of 100
Over the last 90 days ApeCoin 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 ApeCoin investors.

ApeCoin Price Channel

Automata and ApeCoin Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Automata and ApeCoin

The main advantage of trading using opposite Automata and ApeCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automata position performs unexpectedly, ApeCoin 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 ApeCoin will offset losses from the drop in ApeCoin's long position.
The idea behind Automata and ApeCoin 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
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 Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go