Correlation Between Ampleforth and Bitcoin Cash

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

Diversification Opportunities for Ampleforth and Bitcoin Cash

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ampleforth and Bitcoin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ampleforth and Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Cash and Ampleforth 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 Ampleforth are associated (or correlated) with Bitcoin Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Cash has no effect on the direction of Ampleforth i.e., Ampleforth and Bitcoin Cash go up and down completely randomly.

Pair Corralation between Ampleforth and Bitcoin Cash

Assuming the 90 days trading horizon Ampleforth is expected to generate 0.79 times more return on investment than Bitcoin Cash. However, Ampleforth is 1.26 times less risky than Bitcoin Cash. It trades about -0.23 of its potential returns per unit of risk. Bitcoin Cash is currently generating about -0.31 per unit of risk. If you would invest  115.00  in Ampleforth on February 22, 2022 and sell it today you would lose (26.00)  from holding Ampleforth or give up 22.61% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ampleforth  vs.  Bitcoin Cash

 Performance (%) 
      Timeline 
Ampleforth 
Ampleforth Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ampleforth are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ampleforth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ampleforth Price Channel

Bitcoin Cash 
Bitcoin Performance
0 of 100
Over the last 90 days Bitcoin Cash 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 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 Bitcoin Cash investors.

Bitcoin Price Channel

Ampleforth and Bitcoin Cash Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Ampleforth and Bitcoin Cash

The main advantage of trading using opposite Ampleforth and Bitcoin Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampleforth position performs unexpectedly, Bitcoin Cash 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 Bitcoin Cash will offset losses from the drop in Bitcoin Cash's long position.
The idea behind Ampleforth and Bitcoin Cash 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
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
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
CEO Directory
Screen CEOs from public companies around the world
Go