Correlation Between AdEx and BitMart Token

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

Diversification Opportunities for AdEx and BitMart Token

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between AdEx and BitMart is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AdEx and BitMart Token in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitMart Token and AdEx 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 AdEx 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 AdEx i.e., AdEx and BitMart Token go up and down completely randomly.

Pair Corralation between AdEx and BitMart Token

Assuming the 90 days trading horizon AdEx is expected to under-perform the BitMart Token. But the crypto coin apears to be less risky and, when comparing its historical volatility, AdEx is 1.78 times less risky than BitMart Token. The crypto coin trades about -0.39 of its potential returns per unit of risk. The BitMart Token is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  30.00  in BitMart Token on February 16, 2022 and sell it today you would lose (12.00)  from holding BitMart Token or give up 40.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

AdEx  vs.  BitMart Token

 Performance (%) 
      Timeline 
AdEx 
AdEx Performance
0 of 100
Over the last 90 days AdEx 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 AdEx investors.

AdEx 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

AdEx and BitMart Token Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with AdEx and BitMart Token

The main advantage of trading using opposite AdEx and BitMart Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdEx 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 AdEx 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

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
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go