Correlation Between Arweave and Bancor Network

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

Diversification Opportunities for Arweave and Bancor Network

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Arweave and Bancor is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Arweave 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 Arweave 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 Arweave 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 Arweave i.e., Arweave and Bancor Network go up and down completely randomly.

Pair Corralation between Arweave and Bancor Network

Assuming the 90 days horizon Arweave is expected to generate 2.07 times more return on investment than Bancor Network. However, Arweave is 2.07 times more volatile than Bancor Network Token. It trades about -0.06 of its potential returns per unit of risk. Bancor Network Token is currently generating about -0.16 per unit of risk. If you would invest  5,337  in Arweave on February 19, 2022 and sell it today you would lose (3,836)  from holding Arweave or give up 71.88% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.34%
ValuesDaily Returns

Arweave  vs.  Bancor Network Token

 Performance (%) 
      Timeline 
Arweave 
Arweave Performance
0 of 100
Over the last 90 days Arweave 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 Arweave investors.

Arweave 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

Arweave and Bancor Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Arweave and Bancor Network

The main advantage of trading using opposite Arweave and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arweave 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 Arweave 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go