Correlation Between USD Coin and My Neighbor

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

Diversification Opportunities for USD Coin and My Neighbor

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between USD Coin and My Neighbor

If you would invest  100.00  in USD Coin on March 29, 2022 and sell it today you would earn a total of  0.00  from holding USD Coin or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

USD Coin  vs.  My Neighbor Alice

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

USD Coin Price Channel

My Neighbor Alice 
ALICE Performance
0 of 100
Over the last 90 days My Neighbor Alice 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 indicators 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 My Neighbor Alice investors.

ALICE Price Channel

USD Coin and My Neighbor Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with USD Coin and My Neighbor

The main advantage of trading using opposite USD Coin and My Neighbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USD Coin position performs unexpectedly, My Neighbor 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 My Neighbor will offset losses from the drop in My Neighbor's long position.
The idea behind USD Coin and My Neighbor Alice 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go