Correlation Between AERGO and ABBC Coin

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

Diversification Opportunities for AERGO and ABBC Coin

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between AERGO and ABBC Coin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AERGO and ABBC Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBC Coin and AERGO 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 AERGO are associated (or correlated) with ABBC Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBC Coin has no effect on the direction of AERGO i.e., AERGO and ABBC Coin go up and down completely randomly.

Pair Corralation between AERGO and ABBC Coin

Assuming the 90 days trading horizon AERGO is expected to under-perform the ABBC Coin. In addition to that, AERGO is 1.34 times more volatile than ABBC Coin. It trades about -0.19 of its total potential returns per unit of risk. ABBC Coin is currently generating about 0.03 per unit of volatility. If you would invest  9.50  in ABBC Coin on February 23, 2022 and sell it today you would lose (0.15)  from holding ABBC Coin or give up 1.58% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AERGO  vs.  ABBC Coin

 Performance (%) 
      Timeline 
AERGO 
AERGO Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in AERGO are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, AERGO sustained solid returns over the last few months and may actually be approaching a breakup point.

AERGO Price Channel

ABBC Coin 
ABBC Coin Performance
0 of 100
Over the last 90 days ABBC Coin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, ABBC Coin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ABBC Coin Price Channel

AERGO and ABBC Coin Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with AERGO and ABBC Coin

The main advantage of trading using opposite AERGO and ABBC Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERGO position performs unexpectedly, ABBC Coin 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 ABBC Coin will offset losses from the drop in ABBC Coin's long position.
The idea behind AERGO and ABBC Coin 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 Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
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
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go