Correlation Between Polygon and Beta Finance

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

Diversification Opportunities for Polygon and Beta Finance

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Polygon and Beta Finance is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Polygon and Beta Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta Finance and Polygon 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 Polygon are associated (or correlated) with Beta Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta Finance has no effect on the direction of Polygon i.e., Polygon and Beta Finance go up and down completely randomly.

Pair Corralation between Polygon and Beta Finance

Assuming the 90 days trading horizon Polygon is expected to generate 1.58 times less return on investment than Beta Finance. In addition to that, Polygon is 1.01 times more volatile than Beta Finance. It trades about 0.04 of its total potential returns per unit of risk. Beta Finance is currently generating about 0.06 per unit of volatility. If you would invest  8.82  in Beta Finance on September 3, 2022 and sell it today you would earn a total of  0.21  from holding Beta Finance or generate 2.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Polygon  vs.  Beta Finance

 Performance (%) 
       Timeline  
Polygon 
Polygon Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Polygon are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Polygon sustained solid returns over the last few months and may actually be approaching a breakup point.

Polygon Price Channel

Beta Finance 
Beta Finance Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Beta Finance are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Beta Finance sustained solid returns over the last few months and may actually be approaching a breakup point.

Beta Finance Price Channel

Polygon and Beta Finance Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Polygon and Beta Finance

The main advantage of trading using opposite Polygon and Beta Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polygon position performs unexpectedly, Beta Finance 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 Beta Finance will offset losses from the drop in Beta Finance's long position.
Polygon vs. XRP
Polygon vs. Chainlink
Polygon vs. Solana
Polygon vs. Polkadot
The idea behind Polygon and Beta Finance 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.
Beta Finance vs. XRP
Beta Finance vs. Polygon
Beta Finance vs. Chainlink
Beta Finance vs. Solana
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go