Correlation Between Pirate Chain and BitMart Token

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

Diversification Opportunities for Pirate Chain and BitMart Token

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Pirate and BitMart is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pirate Chain and BitMart Token in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitMart Token and Pirate Chain 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 Pirate Chain are associated (or correlated) with BitMart Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitMart Token has no effect on the direction of Pirate Chain i.e., Pirate Chain and BitMart Token go up and down completely randomly.

Pair Corralation between Pirate Chain and BitMart Token

Assuming the 90 days trading horizon Pirate Chain is expected to under-perform the BitMart Token. But the crypto coin apears to be less risky and, when comparing its historical volatility, Pirate Chain is 1.35 times less risky than BitMart Token. The crypto coin trades about -0.39 of its potential returns per unit of risk. The BitMart Token is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  30.00  in BitMart Token on February 16, 2022 and sell it today you would lose (12.00)  from holding BitMart Token or give up 40.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Pirate Chain  vs.  BitMart Token

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

Pirate Price Channel

BitMart Token 
BitMart Performance
0 of 100
Over the last 90 days BitMart 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 primary 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 BitMart Token investors.

BitMart Price Channel

Pirate Chain and BitMart Token Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Pirate Chain and BitMart Token

The main advantage of trading using opposite Pirate Chain and BitMart Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pirate Chain position performs unexpectedly, BitMart Token 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 BitMart Token will offset losses from the drop in BitMart Token's long position.

Pirate Chain

Pair trading matchups for Pirate Chain

The idea behind Pirate Chain and BitMart 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
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
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
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