Correlation Between Badger DAO and AC Milan

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

Diversification Opportunities for Badger DAO and AC Milan

0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between Badger and AC Milan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Badger DAO and AC Milan Fan Token in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AC Milan Fan and Badger DAO 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 Badger DAO are associated (or correlated) with AC Milan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Milan Fan has no effect on the direction of Badger DAO i.e., Badger DAO and AC Milan go up and down completely randomly.

Pair Corralation between Badger DAO and AC Milan

Assuming the 90 days trading horizon Badger DAO is expected to under-perform the AC Milan. But the crypto coin apears to be less risky and, when comparing its historical volatility, Badger DAO is 2.27 times less risky than AC Milan. The crypto coin trades about -0.41 of its potential returns per unit of risk. The AC Milan Fan is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  605.00  in AC Milan Fan on February 16, 2022 and sell it today you would lose (231.00)  from holding AC Milan Fan or give up 38.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Badger DAO  vs.  AC Milan Fan Token

 Performance (%) 
      Timeline 
Badger DAO 
Badger Performance
0 of 100
Over the last 90 days Badger DAO 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 and fundamental 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 Badger DAO investors.

Badger Price Channel

AC Milan Fan 
AC Milan Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in AC Milan Fan are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, AC Milan sustained solid returns over the last few months and may actually be approaching a breakup point.

AC Milan Price Channel

Badger DAO and AC Milan Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Badger DAO and AC Milan

The main advantage of trading using opposite Badger DAO and AC Milan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Badger DAO position performs unexpectedly, AC Milan 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 AC Milan will offset losses from the drop in AC Milan's long position.
The idea behind Badger DAO and AC Milan Fan 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

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
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go