Correlation Between STEPN and ABBC Coin

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

Diversification Opportunities for STEPN and ABBC Coin

-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between STEPN and ABBC Coin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding STEPN and ABBC Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBC Coin and STEPN 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 STEPN are associated (or correlated) with ABBC Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBC Coin has no effect on the direction of STEPN i.e., STEPN and ABBC Coin go up and down completely randomly.

Pair Corralation between STEPN and ABBC Coin

Assuming the 90 days trading horizon STEPN is expected to under-perform the ABBC Coin. In addition to that, STEPN is 2.03 times more volatile than ABBC Coin. It trades about -0.17 of its total potential returns per unit of risk. ABBC Coin is currently generating about -0.1 per unit of volatility. If you would invest  10.00  in ABBC Coin on March 29, 2022 and sell it today you would lose (3.01)  from holding ABBC Coin or give up 30.1% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

STEPN  vs.  ABBC Coin

 Performance (%) 
      Timeline 
STEPN 
STEPN Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in STEPN are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, STEPN sustained solid returns over the last few months and may actually be approaching a breakup point.

STEPN Price Channel

ABBC Coin 
ABBC Coin Performance
0 of 100
Over the last 90 days ABBC Coin 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 fundamental drivers 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 ABBC Coin investors.

ABBC Coin Price Channel

STEPN and ABBC Coin Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with STEPN and ABBC Coin

The main advantage of trading using opposite STEPN and ABBC Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEPN position performs unexpectedly, ABBC Coin 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 ABBC Coin will offset losses from the drop in ABBC Coin's long position.
The idea behind STEPN and ABBC Coin 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go