Correlation Between FTX Token and SwissBorg

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

Diversification Opportunities for FTX Token and SwissBorg

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between FTX Token and SwissBorg is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and SwissBorg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SwissBorg and FTX Token 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 FTX Token are associated (or correlated) with SwissBorg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SwissBorg has no effect on the direction of FTX Token i.e., FTX Token and SwissBorg go up and down completely randomly.

Pair Corralation between FTX Token and SwissBorg

Assuming the 90 days trading horizon FTX Token is expected to generate 1.11 times less return on investment than SwissBorg. In addition to that, FTX Token is 1.03 times more volatile than SwissBorg. It trades about 0.08 of its total potential returns per unit of risk. SwissBorg is currently generating about 0.09 per unit of volatility. If you would invest  17.00  in SwissBorg on May 20, 2022 and sell it today you would earn a total of  2.00  from holding SwissBorg or generate 11.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.35%
ValuesDaily Returns

FTX Token  vs.  SwissBorg

 Performance (%) 
       Timeline  
FTX Token 
FTX Token Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in FTX Token are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, FTX Token may actually be approaching a critical reversion point that can send shares even higher in September 2022.

FTX Token Price Channel

SwissBorg 
SwissBorg Performance
0 of 100
Over the last 90 days SwissBorg 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 September 2022. The current disturbance may also be a sign of long term up-swing for SwissBorg investors.

SwissBorg Price Channel

FTX Token and SwissBorg Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTX Token and SwissBorg

The main advantage of trading using opposite FTX Token and SwissBorg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, SwissBorg 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 SwissBorg will offset losses from the drop in SwissBorg's long position.
The idea behind FTX Token and SwissBorg 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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