Correlation Between ApeCoin and 1inch

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ApeCoin and 1inch 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 ApeCoin and 1inch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ApeCoin and 1inch, you can compare the effects of market volatilities on ApeCoin and 1inch 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 ApeCoin with a short position of 1inch. Check out your portfolio center. Please also check ongoing floating volatility patterns of ApeCoin and 1inch.

Diversification Opportunities for ApeCoin and 1inch

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between ApeCoin and 1inch is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ApeCoin and 1inch in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1inch and ApeCoin 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 ApeCoin are associated (or correlated) with 1inch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1inch has no effect on the direction of ApeCoin i.e., ApeCoin and 1inch go up and down completely randomly.

Pair Corralation between ApeCoin and 1inch

Assuming the 90 days trading horizon ApeCoin is expected to generate 2.06 times less return on investment than 1inch. But when comparing it to its historical volatility, ApeCoin is 1.19 times less risky than 1inch. It trades about 0.08 of its potential returns per unit of risk. 1inch is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  51.00  in 1inch on December 30, 2023 and sell it today you would earn a total of  9.00  from holding 1inch or generate 17.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

ApeCoin  vs.  1inch

 Performance 
       Timeline  
ApeCoin 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in ApeCoin are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ApeCoin exhibited solid returns over the last few months and may actually be approaching a breakup point.
1inch 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in 1inch are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, 1inch exhibited solid returns over the last few months and may actually be approaching a breakup point.

ApeCoin and 1inch Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ApeCoin and 1inch

The main advantage of trading using opposite ApeCoin and 1inch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ApeCoin position performs unexpectedly, 1inch 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 1inch will offset losses from the drop in 1inch's long position.
The idea behind ApeCoin and 1inch 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 the Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Equity Valuation
Check real value of public entities based on technical and fundamental data
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Bonds Directory
Find actively traded corporate debentures issued by US companies
Global Correlations
Find global opportunities by holding instruments from different markets
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings