Correlation Between Basic Attention and Qtum
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Qtum 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 Qtum 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 Qtum, you can compare the effects of market volatilities on Basic Attention and Qtum 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 Qtum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Qtum.
Diversification Opportunities for Basic Attention and Qtum
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Basic and Qtum is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Qtum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qtum 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 Qtum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qtum has no effect on the direction of Basic Attention i.e., Basic Attention and Qtum go up and down completely randomly.
Pair Corralation between Basic Attention and Qtum
Assuming the 90 days trading horizon Basic Attention Token is expected to under-perform the Qtum. But the crypto coin apears to be less risky and, when comparing its historical volatility, Basic Attention Token is 1.01 times less risky than Qtum. The crypto coin trades about -0.04 of its potential returns per unit of risk. The Qtum is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 386.00 in Qtum on January 18, 2024 and sell it today you would earn a total of 10.00 from holding Qtum or generate 2.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Basic Attention Token vs. Qtum
Performance |
Timeline |
Basic Attention Token |
Qtum |
Basic Attention and Qtum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Basic Attention and Qtum
The main advantage of trading using opposite Basic Attention and Qtum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Qtum 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 Qtum will offset losses from the drop in Qtum's long position.Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. The Open Network | Basic Attention 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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