Correlation Between Alpha Finance and Celer Network

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

Diversification Opportunities for Alpha Finance and Celer Network

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Alpha and Celer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Finance Lab and Celer Network in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Celer Network and Alpha Finance 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 Alpha Finance Lab are associated (or correlated) with Celer Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celer Network has no effect on the direction of Alpha Finance i.e., Alpha Finance and Celer Network go up and down completely randomly.

Pair Corralation between Alpha Finance and Celer Network

Assuming the 90 days trading horizon Alpha Finance Lab is expected to generate 0.7 times more return on investment than Celer Network. However, Alpha Finance Lab is 1.44 times less risky than Celer Network. It trades about -0.39 of its potential returns per unit of risk. Celer Network is currently generating about -0.3 per unit of risk. If you would invest  37.00  in Alpha Finance Lab on February 17, 2022 and sell it today you would lose (21.00)  from holding Alpha Finance Lab or give up 56.76% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Alpha Finance Lab  vs.  Celer Network

 Performance (%) 
      Timeline 
Alpha Finance Lab 
Alpha Performance
0 of 100
Over the last 90 days Alpha Finance Lab 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 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 Alpha Finance Lab investors.

Alpha Price Channel

Celer Network 
Celer Performance
0 of 100
Over the last 90 days Celer Network 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 essential 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 Celer Network investors.

Celer Price Channel

Alpha Finance and Celer Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alpha Finance and Celer Network

The main advantage of trading using opposite Alpha Finance and Celer Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Finance position performs unexpectedly, Celer 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 Celer Network will offset losses from the drop in Celer Network's long position.
The idea behind Alpha Finance Lab and Celer Network 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go