Correlation Between Basic Attention and Ethereum Classic
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Ethereum Classic 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 Ethereum Classic 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 Ethereum Classic, you can compare the effects of market volatilities on Basic Attention and Ethereum Classic 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 Ethereum Classic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Ethereum Classic.
Diversification Opportunities for Basic Attention and Ethereum Classic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Basic and Ethereum is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Ethereum Classic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethereum Classic 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 Ethereum Classic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethereum Classic has no effect on the direction of Basic Attention i.e., Basic Attention and Ethereum Classic go up and down completely randomly.
Pair Corralation between Basic Attention and Ethereum Classic
Assuming the 90 days trading horizon Basic Attention Token is expected to under-perform the Ethereum Classic. In addition to that, Basic Attention is 1.14 times more volatile than Ethereum Classic. It trades about -0.1 of its total potential returns per unit of risk. Ethereum Classic is currently generating about -0.07 per unit of volatility. If you would invest 3,176 in Ethereum Classic on January 26, 2024 and sell it today you would lose (366.00) from holding Ethereum Classic or give up 11.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Basic Attention Token vs. Ethereum Classic
Performance |
| Timeline |
| Basic Attention Token |
| Ethereum Classic |
Basic Attention and Ethereum Classic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Attention and Ethereum Classic
The main advantage of trading using opposite Basic Attention and Ethereum Classic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Ethereum Classic 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 Ethereum Classic will offset losses from the drop in Ethereum Classic's long position.| Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. Staked Ether | Basic Attention vs. The Open Network |
| Ethereum Classic vs. Bitcoin | Ethereum Classic vs. Dogecoin | Ethereum Classic vs. Bitcoin Cash | Ethereum Classic vs. Litecoin |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |