Correlation Between AirSwap and Alephim

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

Diversification Opportunities for AirSwap and Alephim

0.72
  Correlation Coefficient

Poor diversification

The 24 months correlation between AirSwap and Alephim is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AirSwap and Aleph.im in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alephim and AirSwap 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 AirSwap are associated (or correlated) with Alephim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alephim has no effect on the direction of AirSwap i.e., AirSwap and Alephim go up and down completely randomly.

Pair Corralation between AirSwap and Alephim

Assuming the 90 days trading horizon AirSwap is expected to under-perform the Alephim. In addition to that, AirSwap is 1.26 times more volatile than Alephim. It trades about -0.12 of its total potential returns per unit of risk. Alephim is currently generating about -0.07 per unit of volatility. If you would invest  58.00  in Alephim on February 27, 2022 and sell it today you would lose (32.00)  from holding Alephim or give up 55.17% of portfolio value over 90 days.
Time Period24 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AirSwap  vs.  Aleph.im

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

AirSwap Price Channel

Alephim 
Alephim Performance
0 of 100
Over the last 90 days Alephim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Alephim investors.

Alephim Price Channel

AirSwap and Alephim Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with AirSwap and Alephim

The main advantage of trading using opposite AirSwap and Alephim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AirSwap position performs unexpectedly, Alephim 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 Alephim will offset losses from the drop in Alephim's long position.
The idea behind AirSwap and Alephim 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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