Correlation Between Applied Blockchain and AMERICAN
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By analyzing existing cross correlation between Applied Blockchain and AMERICAN TOWER P, you can compare the effects of market volatilities on Applied Blockchain and AMERICAN 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 Applied Blockchain with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and AMERICAN.
Diversification Opportunities for Applied Blockchain and AMERICAN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and AMERICAN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and AMERICAN TOWER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN TOWER P and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN TOWER P has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and AMERICAN go up and down completely randomly.
Pair Corralation between Applied Blockchain and AMERICAN
Given the investment horizon of 90 days Applied Blockchain is expected to generate 10.93 times more return on investment than AMERICAN. However, Applied Blockchain is 10.93 times more volatile than AMERICAN TOWER P. It trades about 0.16 of its potential returns per unit of risk. AMERICAN TOWER P is currently generating about -0.2 per unit of risk. If you would invest 759.00 in Applied Blockchain on September 13, 2024 and sell it today you would earn a total of 154.00 from holding Applied Blockchain or generate 20.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Applied Blockchain vs. AMERICAN TOWER P
Performance |
| Timeline |
| Applied Blockchain |
| AMERICAN TOWER P |
Applied Blockchain and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and AMERICAN
The main advantage of trading using opposite Applied Blockchain and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| AMERICAN vs. Monster Beverage Corp | AMERICAN vs. Molson Coors Brewing | AMERICAN vs. High Performance Beverages | AMERICAN vs. Papaya Growth Opportunity |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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