Correlation Between BUSD and BakeryToken

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

Diversification Opportunities for BUSD and BakeryToken

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BUSD and BakeryToken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BUSD and BakeryToken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BakeryToken and BUSD 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 BUSD are associated (or correlated) with BakeryToken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BakeryToken has no effect on the direction of BUSD i.e., BUSD and BakeryToken go up and down completely randomly.

Pair Corralation between BUSD and BakeryToken

If you would invest  100.00  in BUSD on March 28, 2022 and sell it today you would earn a total of  0.00  from holding BUSD or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.32%
ValuesDaily Returns

BUSD  vs.  BakeryToken

 Performance (%) 
      Timeline 
BUSD 
BUSD Performance
0 of 100
Over the last 90 days BUSD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BUSD is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BUSD Price Channel

BakeryToken 
BakeryToken Performance
0 of 100
Over the last 90 days BakeryToken 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 forward-looking signals remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for BakeryToken investors.

BakeryToken Price Channel

BUSD and BakeryToken Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BUSD and BakeryToken

The main advantage of trading using opposite BUSD and BakeryToken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUSD position performs unexpectedly, BakeryToken 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 BakeryToken will offset losses from the drop in BakeryToken's long position.
The idea behind BUSD and BakeryToken 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
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
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go