Correlation Between 1inch and BitMart Token

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

Diversification Opportunities for 1inch and BitMart Token

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between 1inch and BitMart is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding 1inch and BitMart Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitMart Token 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 BitMart Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitMart Token has no effect on the direction of 1inch i.e., 1inch and BitMart Token go up and down completely randomly.

Pair Corralation between 1inch and BitMart Token

Assuming the 90 days trading horizon 1inch is expected to under-perform the BitMart Token. In addition to that, 1inch is 1.21 times more volatile than BitMart Token. It trades about -0.11 of its total potential returns per unit of risk. BitMart Token is currently generating about -0.08 per unit of volatility. If you would invest  39.00  in BitMart Token on February 21, 2022 and sell it today you would lose (24.00)  from holding BitMart Token or give up 61.54% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.35%
ValuesDaily Returns

1inch  vs.  BitMart Token

 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

BitMart Token 
BitMart Performance
0 of 100
Over the last 90 days BitMart Token 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 primary 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 BitMart Token investors.

BitMart Price Channel

1inch and BitMart Token Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with 1inch and BitMart Token

The main advantage of trading using opposite 1inch and BitMart Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1inch position performs unexpectedly, BitMart Token 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 BitMart Token will offset losses from the drop in BitMart Token's long position.
The idea behind 1inch and BitMart Token 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
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
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
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
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go