Correlation Between Alps Clean and Bancor Network

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

Diversification Opportunities for Alps Clean and Bancor Network

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Alps Clean and Bancor is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alps Clean Energy 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 Alps Clean 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 Alps Clean Energy 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 Alps Clean i.e., Alps Clean and Bancor Network go up and down completely randomly.

Pair Corralation between Alps Clean and Bancor Network

Given the investment horizon of 90 days Alps Clean Energy is expected to under-perform the Bancor Network. But the etf apears to be less risky and, when comparing its historical volatility, Alps Clean Energy is 2.05 times less risky than Bancor Network. The etf trades about -0.19 of its potential returns per unit of risk. The Bancor Network Token is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  45.00  in Bancor Network Token on June 29, 2022 and sell it today you would earn a total of  2.00  from holding Bancor Network Token or generate 4.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy66.67%
ValuesDaily Returns

Alps Clean Energy  vs.  Bancor Network Token

 Performance (%) 
       Timeline  
Alps Clean Energy 
Alps Clean Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Alps Clean Energy are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Alps Clean reported solid returns over the last few months and may actually be approaching a breakup point.

Alps Clean 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 somewhat strong basic indicators, Bancor Network is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Alps Clean and Bancor Network Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alps Clean and Bancor Network

The main advantage of trading using opposite Alps Clean and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alps Clean 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.
Alps Clean vs. Gx Autonomous Electric
The idea behind Alps Clean Energy 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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