Correlation Between 1inch and Bancor Network

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

Diversification Opportunities for 1inch and Bancor Network

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between 1inch and Bancor is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding 1inch and Bancor Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancor Network 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 Bancor Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancor Network Token has no effect on the direction of 1inch i.e., 1inch and Bancor Network go up and down completely randomly.

Pair Corralation between 1inch and Bancor Network

Assuming the 90 days trading horizon 1inch is expected to under-perform the Bancor Network. In addition to that, 1inch is 1.39 times more volatile than Bancor Network Token. It trades about -0.15 of its total potential returns per unit of risk. Bancor Network Token is currently generating about -0.2 per unit of volatility. If you would invest  411.00  in Bancor Network Token on February 27, 2022 and sell it today you would lose (283.00)  from holding Bancor Network Token or give up 68.86% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.23%
ValuesDaily Returns

1inch  vs.  Bancor Network 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

Bancor Network Token 
Bancor Performance
0 of 100
Over the last 90 days Bancor Network 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 basic 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 Bancor Network Token investors.

Bancor Price Channel

1inch and Bancor Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with 1inch and Bancor Network

The main advantage of trading using opposite 1inch and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1inch position performs unexpectedly, Bancor 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 Bancor Network will offset losses from the drop in Bancor Network's long position.
The idea behind 1inch and Bancor Network 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
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
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go