Correlation Between Basic Attention and USD Coin
Can any of the company-specific risk be diversified away by investing in both Basic Attention and USD Coin 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 USD Coin 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 USD Coin, you can compare the effects of market volatilities on Basic Attention and USD Coin 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 USD Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and USD Coin.
Diversification Opportunities for Basic Attention and USD Coin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Basic and USD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and USD Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USD Coin 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 USD Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USD Coin has no effect on the direction of Basic Attention i.e., Basic Attention and USD Coin go up and down completely randomly.
Pair Corralation between Basic Attention and USD Coin
Assuming the 90 days trading horizon Basic Attention Token is expected to under-perform the USD Coin. In addition to that, Basic Attention is 26.71 times more volatile than USD Coin. It trades about 0.0 of its total potential returns per unit of risk. USD Coin is currently generating about 0.0 per unit of volatility. If you would invest 100.00 in USD Coin on December 30, 2023 and sell it today you would earn a total of 0.00 from holding USD Coin or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Basic Attention Token vs. USD Coin
Performance |
Timeline |
Basic Attention Token |
USD Coin |
Basic Attention and USD Coin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Basic Attention and USD Coin
The main advantage of trading using opposite Basic Attention and USD Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, USD Coin 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 USD Coin will offset losses from the drop in USD Coin'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |