Correlation Between Adventure Gold and Axie Infinity

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

Diversification Opportunities for Adventure Gold and Axie Infinity

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Adventure and Axie Infinity is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Adventure Gold and Axie Infinity Shards in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Axie Infinity Shards and Adventure Gold 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 Adventure Gold are associated (or correlated) with Axie Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axie Infinity Shards has no effect on the direction of Adventure Gold i.e., Adventure Gold and Axie Infinity go up and down completely randomly.

Pair Corralation between Adventure Gold and Axie Infinity

Assuming the 90 days trading horizon Adventure Gold is expected to under-perform the Axie Infinity. In addition to that, Adventure Gold is 1.46 times more volatile than Axie Infinity Shards. It trades about -0.29 of its total potential returns per unit of risk. Axie Infinity Shards is currently generating about -0.35 per unit of volatility. If you would invest  4,616  in Axie Infinity Shards on February 18, 2022 and sell it today you would lose (2,447)  from holding Axie Infinity Shards or give up 53.01% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Adventure Gold  vs.  Axie Infinity Shards

 Performance (%) 
      Timeline 
Adventure Gold 
Adventure Performance
0 of 100
Over the last 90 days Adventure Gold 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 essential 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 Adventure Gold investors.

Adventure Price Channel

Axie Infinity Shards 
Axie Infinity Performance
0 of 100
Over the last 90 days Axie Infinity Shards 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 Axie Infinity Shards investors.

Axie Infinity Price Channel

Adventure Gold and Axie Infinity Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Adventure Gold and Axie Infinity

The main advantage of trading using opposite Adventure Gold and Axie Infinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adventure Gold position performs unexpectedly, Axie Infinity 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 Axie Infinity will offset losses from the drop in Axie Infinity's long position.
The idea behind Adventure Gold and Axie Infinity Shards 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
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
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go