Correlation Between FTX Token and Lisk

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

Diversification Opportunities for FTX Token and Lisk

-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between FTX and Lisk is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and Lisk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lisk and FTX Token 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 FTX Token are associated (or correlated) with Lisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lisk has no effect on the direction of FTX Token i.e., FTX Token and Lisk go up and down completely randomly.

Pair Corralation between FTX Token and Lisk

Assuming the 90 days trading horizon FTX Token is expected to generate 2.16 times less return on investment than Lisk. But when comparing it to its historical volatility, FTX Token is 2.14 times less risky than Lisk. It trades about 0.15 of its potential returns per unit of risk. Lisk is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  138.00  in Lisk on December 29, 2023 and sell it today you would earn a total of  58.00  from holding Lisk or generate 42.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

FTX Token  vs.  Lisk

 Performance 
       Timeline  
FTX Token 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days FTX Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2024. The latest tumult may also be a sign of longer-term up-swing for FTX Token shareholders.
Lisk 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lisk are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking signals, Lisk exhibited solid returns over the last few months and may actually be approaching a breakup point.

FTX Token and Lisk Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTX Token and Lisk

The main advantage of trading using opposite FTX Token and Lisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, Lisk 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 Lisk will offset losses from the drop in Lisk's long position.
The idea behind FTX Token and Lisk 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
CEOs Directory
Screen CEOs from public companies around the world
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Fundamental Analysis
View fundamental data based on most recent published financial statements
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Stocks Directory
Find actively traded stocks across global markets
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets