Correlation Between Basic Attention and Status Network
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Status Network 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 Status Network 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 Status Network Token, you can compare the effects of market volatilities on Basic Attention and Status Network 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 Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Status Network.
Diversification Opportunities for Basic Attention and Status Network
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Basic and Status is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Status Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Status Network Token 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 Status Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Status Network Token has no effect on the direction of Basic Attention i.e., Basic Attention and Status Network go up and down completely randomly.
Pair Corralation between Basic Attention and Status Network
Assuming the 90 days trading horizon Basic Attention Token is expected to under-perform the Status Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, Basic Attention Token is 1.21 times less risky than Status Network. The crypto coin trades about 0.0 of its potential returns per unit of risk. The Status Network Token is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Status Network Token on January 25, 2024 and sell it today you would lose (0.82) from holding Status Network Token or give up 16.4% 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. Status Network Token
Performance |
| Timeline |
| Basic Attention Token |
| Status Network Token |
Basic Attention and Status Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Attention and Status Network
The main advantage of trading using opposite Basic Attention and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Status Network 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 Status Network will offset losses from the drop in Status Network's long position.| Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. The Open Network | Basic Attention vs. Staked Ether |
| Status Network vs. Solana | Status Network vs. XRP | Status Network vs. The Open Network | Status Network 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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