Correlation Between Alephim and Beta Finance

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

Diversification Opportunities for Alephim and Beta Finance

0.6
  Correlation Coefficient

Poor diversification

The 2 months correlation between Alephim and Beta Finance is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aleph.im and Beta Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta Finance 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 Beta Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta Finance has no effect on the direction of Alephim i.e., Alephim and Beta Finance go up and down completely randomly.

Pair Corralation between Alephim and Beta Finance

Assuming the 90 days trading horizon Alephim is expected to under-perform the Beta Finance. But the crypto coin apears to be less risky and, when comparing its historical volatility, Alephim is 11.71 times less risky than Beta Finance. The crypto coin trades about -0.03 of its potential returns per unit of risk. The Beta Finance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Beta Finance on February 21, 2022 and sell it today you would earn a total of  12.00  from holding Beta Finance or generate 9.223372036854776E16% return on investment over 90 days.
Time Period2 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy88.24%
ValuesDaily Returns

Aleph.im  vs.  Beta Finance

 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

Beta Finance 
Beta Finance Performance
0 of 100
Over the last 90 days Beta Finance 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 Beta Finance investors.

Beta Finance Price Channel

Alephim and Beta Finance Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alephim and Beta Finance

The main advantage of trading using opposite Alephim and Beta Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alephim position performs unexpectedly, Beta Finance 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 Beta Finance will offset losses from the drop in Beta Finance's long position.
The idea behind Alephim and Beta Finance 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

CEO Directory
Screen CEOs from public companies around the world
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
Content Syndication
Quickly integrate customizable finance content to your own investment portal
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
Earnings Calls
Check upcoming earnings announcements updated hourly across public 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
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go