Correlation Between Anchor Protocol and Bitcoin

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

Diversification Opportunities for Anchor Protocol and Bitcoin

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Anchor and Bitcoin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Anchor Protocol and Bitcoin in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin and Anchor Protocol 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 Anchor Protocol are associated (or correlated) with Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin has no effect on the direction of Anchor Protocol i.e., Anchor Protocol and Bitcoin go up and down completely randomly.

Pair Corralation between Anchor Protocol and Bitcoin

Assuming the 90 days trading horizon Anchor Protocol is expected to generate 11.91 times more return on investment than Bitcoin. However, Anchor Protocol is 11.91 times more volatile than Bitcoin. It trades about -0.01 of its potential returns per unit of risk. Bitcoin is currently generating about -0.37 per unit of risk. If you would invest  215.00  in Anchor Protocol on February 15, 2022 and sell it today you would lose (189.00)  from holding Anchor Protocol or give up 87.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Anchor Protocol  vs.  Bitcoin

 Performance (%) 
      Timeline 
Anchor Protocol 
Anchor Performance
0 of 100
Over the last 90 days Anchor Protocol has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Anchor Protocol sustained solid returns over the last few months and may actually be approaching a breakup point.

Anchor Price Channel

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

Bitcoin Price Channel

Anchor Protocol and Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Anchor Protocol and Bitcoin

The main advantage of trading using opposite Anchor Protocol and Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anchor Protocol position performs unexpectedly, Bitcoin 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 will offset losses from the drop in Bitcoin's long position.
The idea behind Anchor Protocol and Bitcoin 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
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
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go