Correlation Between Basic Attention and BRC
Can any of the company-specific risk be diversified away by investing in both Basic Attention and BRC 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 BRC 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 BRC, you can compare the effects of market volatilities on Basic Attention and BRC 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 BRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and BRC.
Diversification Opportunities for Basic Attention and BRC
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Basic and BRC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and BRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRC 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 BRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRC has no effect on the direction of Basic Attention i.e., Basic Attention and BRC go up and down completely randomly.
Pair Corralation between Basic Attention and BRC
If you would invest 4,522 in BRC on January 17, 2024 and sell it today you would earn a total of 0.00 from holding BRC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Basic Attention Token vs. BRC
Performance |
| Timeline |
| Basic Attention Token |
| BRC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Basic Attention and BRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Attention and BRC
The main advantage of trading using opposite Basic Attention and BRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, BRC 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 BRC will offset losses from the drop in BRC'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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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