Correlation Between Ankr Network and Biconomy
Can any of the company-specific risk be diversified away by investing in both Ankr Network and Biconomy 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 Ankr Network and Biconomy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ankr Network and Biconomy, you can compare the effects of market volatilities on Ankr Network and Biconomy 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 Ankr Network with a short position of Biconomy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankr Network and Biconomy.
Diversification Opportunities for Ankr Network and Biconomy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ankr and Biconomy is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ankr Network and Biconomy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biconomy and Ankr Network 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 Ankr Network are associated (or correlated) with Biconomy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biconomy has no effect on the direction of Ankr Network i.e., Ankr Network and Biconomy go up and down completely randomly.
Pair Corralation between Ankr Network and Biconomy
Assuming the 90 days trading horizon Ankr Network is expected to generate 10.96 times less return on investment than Biconomy. But when comparing it to its historical volatility, Ankr Network is 6.83 times less risky than Biconomy. It trades about 0.03 of its potential returns per unit of risk. Biconomy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Biconomy on January 26, 2024 and sell it today you would earn a total of 52.00 from holding Biconomy or generate 9.223372036854776E16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ankr Network vs. Biconomy
Performance |
Timeline |
Ankr Network |
Biconomy |
Ankr Network and Biconomy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ankr Network and Biconomy
The main advantage of trading using opposite Ankr Network and Biconomy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankr Network position performs unexpectedly, Biconomy 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 Biconomy will offset losses from the drop in Biconomy's long position.Ankr Network vs. Solana | Ankr Network vs. XRP | Ankr Network vs. Staked Ether | Ankr Network 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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