Correlation Between Origin Protocol and BCD
Can any of the company-specific risk be diversified away by investing in both Origin Protocol and BCD 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 Origin Protocol and BCD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Protocol and BCD, you can compare the effects of market volatilities on Origin Protocol and BCD 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 Origin Protocol with a short position of BCD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and BCD.
Diversification Opportunities for Origin Protocol and BCD
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Origin and BCD is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and BCD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCD and Origin Protocol 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 Origin Protocol are associated (or correlated) with BCD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCD has no effect on the direction of Origin Protocol i.e., Origin Protocol and BCD go up and down completely randomly.
Pair Corralation between Origin Protocol and BCD
Assuming the 90 days trading horizon Origin Protocol is expected to under-perform the BCD. In addition to that, Origin Protocol is 1.2 times more volatile than BCD. It trades about -0.16 of its total potential returns per unit of risk. BCD is currently generating about -0.09 per unit of volatility. If you would invest 13.00 in BCD on January 20, 2024 and sell it today you would lose (2.00) from holding BCD or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Protocol vs. BCD
Performance |
| Timeline |
| Origin Protocol |
| BCD |
Origin Protocol and BCD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Protocol and BCD
The main advantage of trading using opposite Origin Protocol and BCD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol position performs unexpectedly, BCD 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 BCD will offset losses from the drop in BCD's long position.| Origin Protocol vs. Solana | Origin Protocol vs. XRP | Origin Protocol vs. The Open Network | Origin Protocol vs. Staked Ether |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |