Correlation Between Alchemix and 1inch

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

Diversification Opportunities for Alchemix and 1inch

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Alchemix and 1inch is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alchemix and 1inch in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on 1inch and Alchemix 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 Alchemix are associated (or correlated) with 1inch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1inch has no effect on the direction of Alchemix i.e., Alchemix and 1inch go up and down completely randomly.

Pair Corralation between Alchemix and 1inch

Assuming the 90 days trading horizon Alchemix is expected to under-perform the 1inch. In addition to that, Alchemix is 1.04 times more volatile than 1inch. It trades about -0.45 of its total potential returns per unit of risk. 1inch is currently generating about -0.25 per unit of volatility. If you would invest  154.00  in 1inch on February 17, 2022 and sell it today you would lose (60.00)  from holding 1inch or give up 38.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Alchemix  vs.  1inch

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

Alchemix Price Channel

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

Alchemix and 1inch Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alchemix and 1inch

The main advantage of trading using opposite Alchemix and 1inch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemix position performs unexpectedly, 1inch 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 1inch will offset losses from the drop in 1inch's long position.
The idea behind Alchemix and 1inch 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
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
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go