Correlation Between Badger DAO and Band Protocol

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

Diversification Opportunities for Badger DAO and Band Protocol

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Badger and Band Protocol is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Badger DAO and Band Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Band Protocol 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 Band Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Band Protocol has no effect on the direction of Badger DAO i.e., Badger DAO and Band Protocol go up and down completely randomly.

Pair Corralation between Badger DAO and Band Protocol

Assuming the 90 days trading horizon Badger DAO is expected to generate 0.94 times more return on investment than Band Protocol. However, Badger DAO is 1.06 times less risky than Band Protocol. It trades about -0.15 of its potential returns per unit of risk. Band Protocol is currently generating about -0.26 per unit of risk. If you would invest  845.00  in Badger DAO on February 23, 2022 and sell it today you would lose (267.00)  from holding Badger DAO or give up 31.6% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Badger DAO  vs.  Band Protocol

 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

Band Protocol 
Band Protocol Performance
0 of 100
Over the last 90 days Band Protocol 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 Band Protocol investors.

Band Protocol Price Channel

Badger DAO and Band Protocol Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Badger DAO and Band Protocol

The main advantage of trading using opposite Badger DAO and Band Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Badger DAO position performs unexpectedly, Band Protocol 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 Band Protocol will offset losses from the drop in Band Protocol's long position.
The idea behind Badger DAO and Band Protocol 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go