Correlation Between Badger DAO and CoinEx Token

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

Diversification Opportunities for Badger DAO and CoinEx Token

0.85
  Correlation Coefficient

Very poor diversification

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

Pair Corralation between Badger DAO and CoinEx Token

Assuming the 90 days trading horizon Badger DAO is expected to under-perform the CoinEx Token. In addition to that, Badger DAO is 1.59 times more volatile than CoinEx Token. It trades about -0.08 of its total potential returns per unit of risk. CoinEx Token is currently generating about -0.02 per unit of volatility. If you would invest  6.30  in CoinEx Token on February 22, 2022 and sell it today you would lose (2.11)  from holding CoinEx Token or give up 33.49% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.35%
ValuesDaily Returns

Badger DAO  vs.  CoinEx 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

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

CoinEx Price Channel

Badger DAO and CoinEx Token Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Badger DAO and CoinEx Token

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

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go