Correlation Between Basic Attention and Dash
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Dash 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 Dash 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 Dash, you can compare the effects of market volatilities on Basic Attention and Dash 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 Dash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Dash.
Diversification Opportunities for Basic Attention and Dash
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Basic and Dash is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Dash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dash 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 Dash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dash has no effect on the direction of Basic Attention i.e., Basic Attention and Dash go up and down completely randomly.
Pair Corralation between Basic Attention and Dash
Assuming the 90 days trading horizon Basic Attention is expected to generate 1.07 times less return on investment than Dash. In addition to that, Basic Attention is 1.12 times more volatile than Dash. It trades about 0.14 of its total potential returns per unit of risk. Dash is currently generating about 0.16 per unit of volatility. If you would invest 3,123 in Dash on December 29, 2023 and sell it today you would earn a total of 659.00 from holding Dash or generate 21.1% 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. Dash
Performance |
Timeline |
Basic Attention Token |
Dash |
Basic Attention and Dash Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Basic Attention and Dash
The main advantage of trading using opposite Basic Attention and Dash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Dash 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 Dash will offset losses from the drop in Dash's long position.Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. Staked Ether | Basic Attention vs. Avalanche |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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