Correlation Between Alephim and Anchor Protocol

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

Diversification Opportunities for Alephim and Anchor Protocol

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Alephim and Anchor is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aleph.im and Anchor Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Protocol and Alephim 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 Alephim are associated (or correlated) with Anchor Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Protocol has no effect on the direction of Alephim i.e., Alephim and Anchor Protocol go up and down completely randomly.

Pair Corralation between Alephim and Anchor Protocol

Assuming the 90 days trading horizon Alephim is expected to generate 0.04 times more return on investment than Anchor Protocol. However, Alephim is 23.11 times less risky than Anchor Protocol. It trades about 0.01 of its potential returns per unit of risk. Anchor Protocol is currently generating about -0.09 per unit of risk. If you would invest  26.00  in Alephim on February 23, 2022 and sell it today you would earn a total of  0.00  from holding Alephim or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Aleph.im  vs.  Anchor Protocol

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

Alephim Price Channel

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

Anchor Price Channel

Alephim and Anchor Protocol Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alephim and Anchor Protocol

The main advantage of trading using opposite Alephim and Anchor Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alephim position performs unexpectedly, Anchor 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 Anchor Protocol will offset losses from the drop in Anchor Protocol's long position.
The idea behind Alephim and Anchor 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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