Correlation Between Alchemix and Band Protocol

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

Diversification Opportunities for Alchemix and Band Protocol

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Alchemix and Band Protocol is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alchemix and Band Protocol in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Band Protocol 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 Band Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Band Protocol has no effect on the direction of Alchemix i.e., Alchemix and Band Protocol go up and down completely randomly.

Pair Corralation between Alchemix and Band Protocol

Assuming the 90 days trading horizon Alchemix is expected to under-perform the Band Protocol. But the crypto coin apears to be less risky and, when comparing its historical volatility, Alchemix is 1.06 times less risky than Band Protocol. The crypto coin trades about -0.45 of its potential returns per unit of risk. The Band Protocol is currently generating about -0.36 of returns per unit of risk over similar time horizon. If you would invest  396.00  in Band Protocol on February 17, 2022 and sell it today you would lose (217.00)  from holding Band Protocol or give up 54.8% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy95.45%
ValuesDaily Returns

Alchemix  vs.  Band Protocol

 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

Band Protocol 
Band Protocol Performance
0 of 100
Over the last 90 days Band Protocol 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 Band Protocol investors.

Band Protocol Price Channel

Alchemix and Band Protocol Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alchemix and Band Protocol

The main advantage of trading using opposite Alchemix and Band Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemix position performs unexpectedly, Band Protocol 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 Band Protocol will offset losses from the drop in Band Protocol's long position.
The idea behind Alchemix and Band Protocol 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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go