Correlation Between Basic Attention and Monero
Can any of the company-specific risk be diversified away by investing in both Basic Attention and Monero 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 Monero 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 Monero, you can compare the effects of market volatilities on Basic Attention and Monero 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 Monero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Attention and Monero.
Diversification Opportunities for Basic Attention and Monero
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Basic and Monero is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Basic Attention Token and Monero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monero 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 Monero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monero has no effect on the direction of Basic Attention i.e., Basic Attention and Monero go up and down completely randomly.
Pair Corralation between Basic Attention and Monero
Assuming the 90 days trading horizon Basic Attention Token is expected to generate 2.78 times more return on investment than Monero. However, Basic Attention is 2.78 times more volatile than Monero. It trades about 0.16 of its potential returns per unit of risk. Monero is currently generating about 0.06 per unit of risk. If you would invest 28.00 in Basic Attention Token on December 29, 2023 and sell it today you would earn a total of 6.00 from holding Basic Attention Token or generate 21.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Basic Attention Token vs. Monero
Performance |
Timeline |
Basic Attention Token |
Monero |
Basic Attention and Monero Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Basic Attention and Monero
The main advantage of trading using opposite Basic Attention and Monero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Attention position performs unexpectedly, Monero 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 Monero will offset losses from the drop in Monero'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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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