Correlation Between Algorand and Alephim

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

Diversification Opportunities for Algorand and Alephim

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between Algorand and Alephim is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Algorand and Aleph.im in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alephim and Algorand 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 Algorand are associated (or correlated) with Alephim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alephim has no effect on the direction of Algorand i.e., Algorand and Alephim go up and down completely randomly.

Pair Corralation between Algorand and Alephim

Assuming the 90 days trading horizon Algorand is expected to under-perform the Alephim. In addition to that, Algorand is 3.25 times more volatile than Alephim. It trades about -0.11 of its total potential returns per unit of risk. Alephim is currently generating about -0.02 per unit of volatility. If you would invest  28.00  in Alephim on February 15, 2022 and sell it today you would lose (1.00)  from holding Alephim or give up 3.57% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Algorand  vs.  Aleph.im

 Performance (%) 
      Timeline 
Algorand 
Algorand Performance
0 of 100
Over the last 90 days Algorand 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 technical and 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 Algorand investors.

Algorand Price Channel

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

Algorand and Alephim Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Algorand and Alephim

The main advantage of trading using opposite Algorand and Alephim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algorand position performs unexpectedly, Alephim 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 Alephim will offset losses from the drop in Alephim's long position.
The idea behind Algorand and Alephim 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go