Correlation Between Ampleforth and Bancor Network

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

Diversification Opportunities for Ampleforth and Bancor Network

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ampleforth and Bancor is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ampleforth and Bancor Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancor Network Token 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 Bancor Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancor Network Token has no effect on the direction of Ampleforth i.e., Ampleforth and Bancor Network go up and down completely randomly.

Pair Corralation between Ampleforth and Bancor Network

Assuming the 90 days trading horizon Ampleforth is expected to generate 0.89 times more return on investment than Bancor Network. However, Ampleforth is 1.13 times less risky than Bancor Network. It trades about -0.23 of its potential returns per unit of risk. Bancor Network Token is currently generating about -0.35 per unit of risk. If you would invest  115.00  in Ampleforth on February 23, 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 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ampleforth  vs.  Bancor Network Token

 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

Bancor Network Token 
Bancor Performance
0 of 100
Over the last 90 days Bancor Network Token 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 Bancor Network Token investors.

Bancor Price Channel

Ampleforth and Bancor Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Ampleforth and Bancor Network

The main advantage of trading using opposite Ampleforth and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampleforth position performs unexpectedly, Bancor 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 Bancor Network will offset losses from the drop in Bancor Network's long position.
The idea behind Ampleforth and Bancor Network Token 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 Bond Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go