Correlation Between Alephim and BORA

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

Diversification Opportunities for Alephim and BORA

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Alephim and BORA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aleph.im and BORA in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BORA 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 BORA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORA has no effect on the direction of Alephim i.e., Alephim and BORA go up and down completely randomly.

Pair Corralation between Alephim and BORA

Assuming the 90 days trading horizon Alephim is expected to under-perform the BORA. But the crypto coin apears to be less risky and, when comparing its historical volatility, Alephim is 2.64 times less risky than BORA. The crypto coin trades about -0.02 of its potential returns per unit of risk. The BORA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  20.00  in BORA on February 17, 2022 and sell it today you would earn a total of  20.00  from holding BORA or generate 100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.67%
ValuesDaily Returns

Aleph.im  vs.  BORA

 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

BORA 
BORA Performance
0 of 100
Over the last 90 days BORA 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 BORA investors.

BORA Price Channel

Alephim and BORA Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alephim and BORA

The main advantage of trading using opposite Alephim and BORA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alephim position performs unexpectedly, BORA 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 BORA will offset losses from the drop in BORA's long position.
The idea behind Alephim and BORA 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 CEO Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
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
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go