Correlation Between Basic Attention and MX Token
Can any of the company-specific risk be diversified away by investing in both Basic Attention and MX 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 Basic Attention and MX Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Basic Attention Token and MX Token, you can compare the effects of market volatilities on Basic Attention and MX 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 Basic Attention with a short position of MX Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and MX Token.
Diversification Opportunities for Basic Attention and MX Token
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Basic and MX Token is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and MX Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MX Token and Basic Attention 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 Basic Attention Token are associated (or correlated) with MX Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MX Token has no effect on the direction of Basic Attention i.e., Basic Attention and MX Token go up and down completely randomly.
Pair Corralation between Basic Attention and MX Token
Assuming the 90 days trading horizon Basic Attention Token is expected to under-perform the MX Token. In addition to that, Basic Attention is 1.13 times more volatile than MX Token. It trades about -0.1 of its total potential returns per unit of risk. MX Token is currently generating about 0.14 per unit of volatility. If you would invest 433.00 in MX Token on January 26, 2024 and sell it today you would earn a total of 70.00 from holding MX Token or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Basic Attention Token vs. MX Token
Performance |
| Timeline |
| Basic Attention Token |
| MX Token |
Basic Attention and MX Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Attention and MX Token
The main advantage of trading using opposite Basic Attention and MX Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, MX 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 MX Token will offset losses from the drop in MX Token's long position.| Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. Staked Ether | Basic Attention vs. The Open Network |
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 the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |