Correlation Between Badger DAO and Bancor Network

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

Diversification Opportunities for Badger DAO and Bancor Network

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Badger and Bancor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Badger DAO and Bancor Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancor Network Token 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 Bancor Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancor Network Token has no effect on the direction of Badger DAO i.e., Badger DAO and Bancor Network go up and down completely randomly.

Pair Corralation between Badger DAO and Bancor Network

Assuming the 90 days trading horizon Badger DAO is expected to under-perform the Bancor Network. In addition to that, Badger DAO is 1.95 times more volatile than Bancor Network Token. It trades about -0.09 of its total potential returns per unit of risk. Bancor Network Token is currently generating about -0.16 per unit of volatility. If you would invest  417.00  in Bancor Network Token on February 19, 2022 and sell it today you would lose (282.00)  from holding Bancor Network Token or give up 67.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.68%
ValuesDaily Returns

Badger DAO  vs.  Bancor Network 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

Bancor Network Token 
Bancor Performance
0 of 100
Over the last 90 days Bancor Network Token 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 Bancor Network Token investors.

Bancor Price Channel

Badger DAO and Bancor Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Badger DAO and Bancor Network

The main advantage of trading using opposite Badger DAO and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Badger DAO position performs unexpectedly, Bancor Network 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 Bancor Network will offset losses from the drop in Bancor Network's long position.
The idea behind Badger DAO and Bancor Network Token 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

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
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
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go