Correlation Between 1inch and Alchemix

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both 1inch and Alchemix 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 1inch and Alchemix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1inch and Alchemix, you can compare the effects of market volatilities on 1inch and Alchemix 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 1inch with a short position of Alchemix. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1inch and Alchemix.

Diversification Opportunities for 1inch and Alchemix

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between 1inch and Alchemix is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding 1inch and Alchemix in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alchemix and 1inch 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 1inch are associated (or correlated) with Alchemix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alchemix has no effect on the direction of 1inch i.e., 1inch and Alchemix go up and down completely randomly.

Pair Corralation between 1inch and Alchemix

Assuming the 90 days trading horizon 1inch is expected to generate 0.97 times more return on investment than Alchemix. However, 1inch is 1.04 times less risky than Alchemix. It trades about -0.25 of its potential returns per unit of risk. Alchemix is currently generating about -0.45 per unit of risk. If you would invest  154.00  in 1inch on February 16, 2022 and sell it today you would lose (60.00)  from holding 1inch or give up 38.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

1inch  vs.  Alchemix

 Performance (%) 
      Timeline 
1inch 
1inch Performance
0 of 100
Over the last 90 days 1inch 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 fundamental indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for 1inch investors.

1inch Price Channel

Alchemix 
Alchemix Performance
0 of 100
Over the last 90 days Alchemix 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 fundamental indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for Alchemix investors.

Alchemix Price Channel

1inch and Alchemix Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with 1inch and Alchemix

The main advantage of trading using opposite 1inch and Alchemix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1inch position performs unexpectedly, Alchemix 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 Alchemix will offset losses from the drop in Alchemix's long position.
The idea behind 1inch and Alchemix 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go