Correlation Between Auction and Clover Finance

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

Diversification Opportunities for Auction and Clover Finance

0.87
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Auction and Clover is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Auction and Clover Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Finance and Auction 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 Auction are associated (or correlated) with Clover Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Finance has no effect on the direction of Auction i.e., Auction and Clover Finance go up and down completely randomly.

Pair Corralation between Auction and Clover Finance

Assuming the 90 days trading horizon Auction is expected to generate 1.01 times more return on investment than Clover Finance. However, Auction is 1.01 times more volatile than Clover Finance. It trades about -0.17 of its potential returns per unit of risk. Clover Finance is currently generating about -0.19 per unit of risk. If you would invest  1,217  in Auction on February 24, 2022 and sell it today you would lose (561.00)  from holding Auction or give up 46.1% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy95.65%
ValuesDaily Returns

Auction  vs.  Clover Finance

 Performance (%) 
      Timeline 
Auction 
Auction Performance
0 of 100
Over the last 90 days Auction 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 indicators remain quite persistent which may send shares a bit higher in June 2022. The latest mess may also be a sign of long-standing up-swing for Auction institutional investors.

Auction Price Channel

Clover Finance 
Clover Performance
0 of 100
Over the last 90 days Clover Finance 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 essential 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 Clover Finance investors.

Clover Price Channel

Auction and Clover Finance Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Auction and Clover Finance

The main advantage of trading using opposite Auction and Clover Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction position performs unexpectedly, Clover Finance 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 Clover Finance will offset losses from the drop in Clover Finance's long position.
The idea behind Auction and Clover Finance 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go