Correlation Between Axie Infinity and Alpha Finance

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

Diversification Opportunities for Axie Infinity and Alpha Finance

0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between Axie Infinity and Alpha is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Axie Infinity Shards and Alpha Finance Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Finance Lab and Axie Infinity 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 Axie Infinity Shards are associated (or correlated) with Alpha Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Finance Lab has no effect on the direction of Axie Infinity i.e., Axie Infinity and Alpha Finance go up and down completely randomly.

Pair Corralation between Axie Infinity and Alpha Finance

Assuming the 90 days trading horizon Axie Infinity Shards is expected to under-perform the Alpha Finance. But the crypto coin apears to be less risky and, when comparing its historical volatility, Axie Infinity Shards is 1.12 times less risky than Alpha Finance. The crypto coin trades about -0.2 of its potential returns per unit of risk. The Alpha Finance Lab is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Alpha Finance Lab on February 27, 2022 and sell it today you would lose (80.00)  from holding Alpha Finance Lab or give up 84.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.23%
ValuesDaily Returns

Axie Infinity Shards  vs.  Alpha Finance Lab

 Performance (%) 
      Timeline 
Axie Infinity Shards 
Axie Infinity Performance
0 of 100
Over the last 90 days Axie Infinity Shards 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 Axie Infinity Shards investors.

Axie Infinity Price Channel

Alpha Finance Lab 
Alpha Performance
0 of 100
Over the last 90 days Alpha Finance Lab 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 technical 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 Alpha Finance Lab investors.

Alpha Price Channel

Axie Infinity and Alpha Finance Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Axie Infinity and Alpha Finance

The main advantage of trading using opposite Axie Infinity and Alpha Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axie Infinity position performs unexpectedly, Alpha 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 Alpha Finance will offset losses from the drop in Alpha Finance's long position.
The idea behind Axie Infinity Shards and Alpha Finance Lab 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
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
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go