Correlation Between FTX Token and Audius

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

Diversification Opportunities for FTX Token and Audius

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between FTX Token and Audius is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and Audius in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Audius and FTX Token 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 FTX Token are associated (or correlated) with Audius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Audius has no effect on the direction of FTX Token i.e., FTX Token and Audius go up and down completely randomly.

Pair Corralation between FTX Token and Audius

Assuming the 90 days trading horizon FTX Token is expected to generate 0.56 times more return on investment than Audius. However, FTX Token is 1.8 times less risky than Audius. It trades about -0.05 of its potential returns per unit of risk. Audius is currently generating about -0.05 per unit of risk. If you would invest  6,156  in FTX Token on May 12, 2022 and sell it today you would lose (3,163)  from holding FTX Token or give up 51.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.05%
ValuesDaily Returns

FTX Token  vs.  Audius

 Performance (%) 
       Timeline  
FTX Token 
FTX Token Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in FTX Token are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, FTX Token is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

FTX Token Price Channel

Audius 
Audius Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Audius are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Audius may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Audius Price Channel

FTX Token and Audius Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTX Token and Audius

The main advantage of trading using opposite FTX Token and Audius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, Audius 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 Audius will offset losses from the drop in Audius' long position.
The idea behind FTX Token and Audius 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go