Correlation Between Alchemix and Bancor Network

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

Diversification Opportunities for Alchemix and Bancor Network

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Alchemix and Bancor is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Alchemix and Bancor Network Token in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bancor Network Token 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 Bancor Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancor Network Token has no effect on the direction of Alchemix i.e., Alchemix and Bancor Network go up and down completely randomly.

Pair Corralation between Alchemix and Bancor Network

Assuming the 90 days trading horizon Alchemix is expected to generate 10.64 times more return on investment than Bancor Network. However, Alchemix is 10.64 times more volatile than Bancor Network Token. It trades about 0.04 of its potential returns per unit of risk. Bancor Network Token is currently generating about -0.15 per unit of risk. If you would invest  0.00  in Alchemix on February 17, 2022 and sell it today you would earn a total of  3,344  from holding Alchemix or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy29.3%
ValuesDaily Returns

Alchemix  vs.  Bancor Network Token

 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

Bancor Network Token 
Bancor Performance
0 of 100
Over the last 90 days Bancor Network 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 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 Bancor Network Token investors.

Bancor Price Channel

Alchemix and Bancor Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alchemix and Bancor Network

The main advantage of trading using opposite Alchemix and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemix position performs unexpectedly, Bancor Network 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 Bancor Network will offset losses from the drop in Bancor Network's long position.
The idea behind Alchemix and Bancor Network 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go