Correlation Between Auction and Bezop

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

Diversification Opportunities for Auction and Bezop

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Auction and Bezop is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Auction and Bezop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezop and Auction 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 Auction are associated (or correlated) with Bezop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezop has no effect on the direction of Auction i.e., Auction and Bezop go up and down completely randomly.

Pair Corralation between Auction and Bezop

Assuming the 90 days trading horizon Auction is expected to under-perform the Bezop. But the crypto coin apears to be less risky and, when comparing its historical volatility, Auction is 9.22 times less risky than Bezop. The crypto coin trades about -0.07 of its potential returns per unit of risk. The Bezop is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.32  in Bezop on April 2, 2022 and sell it today you would earn a total of  50.68  from holding Bezop or generate 15797.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.22%
ValuesDaily Returns

Auction  vs.  Bezop

 Performance (%) 
      Timeline 
Auction 
Auction Performance
0 of 100
Over the last 90 days Auction 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 indicators remain quite persistent which may send shares a bit higher in August 2022. The latest mess may also be a sign of long-standing up-swing for Auction institutional investors.

Auction Price Channel

Bezop 
Bezop Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bezop are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Bezop sustained solid returns over the last few months and may actually be approaching a breakup point.

Bezop Price Channel

Auction and Bezop Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Auction and Bezop

The main advantage of trading using opposite Auction and Bezop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction position performs unexpectedly, Bezop 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 Bezop will offset losses from the drop in Bezop's long position.
The idea behind Auction and Bezop 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go