Correlation Between Basic Attention and Theta Network
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Theta 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 Theta 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 Theta Network, you can compare the effects of market volatilities on Basic Attention and Theta 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 Theta Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Theta Network.
Diversification Opportunities for Basic Attention and Theta Network
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Basic and Theta is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Theta Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theta Network 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 Theta Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theta Network has no effect on the direction of Basic Attention i.e., Basic Attention and Theta Network go up and down completely randomly.
Pair Corralation between Basic Attention and Theta Network
Assuming the 90 days trading horizon Basic Attention is expected to generate 13.11 times less return on investment than Theta Network. But when comparing it to its historical volatility, Basic Attention Token is 1.49 times less risky than Theta Network. It trades about 0.02 of its potential returns per unit of risk. Theta Network is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Theta Network on January 20, 2024 and sell it today you would earn a total of 88.00 from holding Theta Network or generate 73.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.78% |
| Values | Daily Returns |
Basic Attention Token vs. Theta Network
Performance |
| Timeline |
| Basic Attention Token |
| Theta Network |
Basic Attention and Theta Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Attention and Theta Network
The main advantage of trading using opposite Basic Attention and Theta Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Theta 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 Theta Network will offset losses from the drop in Theta Network's long position.| Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. The Open Network | Basic Attention vs. Staked Ether |
| Theta Network vs. Solana | Theta Network vs. XRP | Theta Network vs. The Open Network | Theta 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |