Correlation Between Avalanche and Boson Protocol

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

Diversification Opportunities for Avalanche and Boson Protocol

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Avalanche and Boson is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Avalanche and Boson Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boson Protocol and Avalanche 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 Avalanche are associated (or correlated) with Boson Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boson Protocol has no effect on the direction of Avalanche i.e., Avalanche and Boson Protocol go up and down completely randomly.

Pair Corralation between Avalanche and Boson Protocol

Assuming the 90 days trading horizon Avalanche is expected to generate 0.8 times more return on investment than Boson Protocol. However, Avalanche is 1.25 times less risky than Boson Protocol. It trades about -0.04 of its potential returns per unit of risk. Boson Protocol is currently generating about -0.07 per unit of risk. If you would invest  6,153  in Avalanche on April 8, 2022 and sell it today you would lose (4,240)  from holding Avalanche or give up 68.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.92%
ValuesDaily Returns

Avalanche  vs.  Boson Protocol

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

Avalanche Price Channel

Boson Protocol 
Boson Performance
0 of 100
Over the last 90 days Boson Protocol 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 Boson Protocol investors.

Boson Price Channel

Avalanche and Boson Protocol Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Avalanche and Boson Protocol

The main advantage of trading using opposite Avalanche and Boson Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalanche position performs unexpectedly, Boson Protocol 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 Boson Protocol will offset losses from the drop in Boson Protocol's long position.
The idea behind Avalanche and Boson Protocol 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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
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