Correlation Between Basic Attention and Bitcoin SV
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Bitcoin SV 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 Bitcoin SV 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 Bitcoin SV, you can compare the effects of market volatilities on Basic Attention and Bitcoin SV 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 Bitcoin SV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Bitcoin SV.
Diversification Opportunities for Basic Attention and Bitcoin SV
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Basic and Bitcoin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV 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 Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of Basic Attention i.e., Basic Attention and Bitcoin SV go up and down completely randomly.
Pair Corralation between Basic Attention and Bitcoin SV
Assuming the 90 days trading horizon Basic Attention Token is expected to generate 1.0 times more return on investment than Bitcoin SV. However, Basic Attention is 1.0 times more volatile than Bitcoin SV. It trades about -0.1 of its potential returns per unit of risk. Bitcoin SV is currently generating about -0.15 per unit of risk. If you would invest 34.00 in Basic Attention Token on January 26, 2024 and sell it today you would lose (6.00) from holding Basic Attention Token or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Basic Attention Token vs. Bitcoin SV
Performance |
| Timeline |
| Basic Attention Token |
| Bitcoin SV |
Basic Attention and Bitcoin SV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Attention and Bitcoin SV
The main advantage of trading using opposite Basic Attention and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Bitcoin SV 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 Bitcoin SV will offset losses from the drop in Bitcoin SV'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |