Correlation Between Axie Infinity and Boba Network

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

Diversification Opportunities for Axie Infinity and Boba Network

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Axie Infinity and Boba Network is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Axie Infinity Shards and Boba Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boba Network and Axie Infinity 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 Axie Infinity Shards are associated (or correlated) with Boba Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boba Network has no effect on the direction of Axie Infinity i.e., Axie Infinity and Boba Network go up and down completely randomly.

Pair Corralation between Axie Infinity and Boba Network

Assuming the 90 days trading horizon Axie Infinity Shards is expected to under-perform the Boba Network. In addition to that, Axie Infinity is 1.07 times more volatile than Boba Network. It trades about -0.1 of its total potential returns per unit of risk. Boba Network is currently generating about -0.02 per unit of volatility. If you would invest  42.00  in Boba Network on April 8, 2022 and sell it today you would lose (4.00)  from holding Boba Network or give up 9.52% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Axie Infinity Shards  vs.  Boba Network

 Performance (%) 
      Timeline 
Axie Infinity Shards 
Axie Infinity Performance
0 of 100
Over the last 90 days Axie Infinity Shards 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 Axie Infinity Shards investors.

Axie Infinity Price Channel

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

Boba Network Price Channel

Axie Infinity and Boba Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Axie Infinity and Boba Network

The main advantage of trading using opposite Axie Infinity and Boba Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axie Infinity position performs unexpectedly, Boba Network 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 Boba Network will offset losses from the drop in Boba Network's long position.
The idea behind Axie Infinity Shards and Boba Network 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
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
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
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
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go