Correlation Between Ankr Network and Basic Attention

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

Diversification Opportunities for Ankr Network and Basic Attention

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Ankr Network and Basic is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ankr Network and Basic Attention Token in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Basic Attention Token and Ankr Network 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 Ankr Network are associated (or correlated) with Basic Attention. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Attention Token has no effect on the direction of Ankr Network i.e., Ankr Network and Basic Attention go up and down completely randomly.

Pair Corralation between Ankr Network and Basic Attention

Assuming the 90 days trading horizon Ankr Network is expected to under-perform the Basic Attention. In addition to that, Ankr Network is 1.18 times more volatile than Basic Attention Token. It trades about -0.3 of its total potential returns per unit of risk. Basic Attention Token is currently generating about -0.34 per unit of volatility. If you would invest  78.00  in Basic Attention Token on February 16, 2022 and sell it today you would lose (36.00)  from holding Basic Attention Token or give up 46.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Ankr Network  vs.  Basic Attention Token

 Performance (%) 
      Timeline 
Ankr Network 
Ankr Network Performance
0 of 100
Over the last 90 days Ankr 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 forward-looking signals 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 Ankr Network investors.

Ankr Network Price Channel

Basic Attention Token 
Basic Performance
0 of 100
Over the last 90 days Basic Attention 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 Basic Attention Token investors.

Basic Price Channel

Ankr Network and Basic Attention Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Ankr Network and Basic Attention

The main advantage of trading using opposite Ankr Network and Basic Attention positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankr Network position performs unexpectedly, Basic Attention 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 Basic Attention will offset losses from the drop in Basic Attention's long position.
The idea behind Ankr Network and Basic Attention 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go