Correlation Between BounceBit and AGVC
Can any of the company-specific risk be diversified away by investing in both BounceBit and AGVC 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 BounceBit and AGVC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BounceBit and AGVC, you can compare the effects of market volatilities on BounceBit and AGVC 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 BounceBit with a short position of AGVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BounceBit and AGVC.
Diversification Opportunities for BounceBit and AGVC
Very good diversification
The 3 months correlation between BounceBit and AGVC is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BounceBit and AGVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGVC and BounceBit 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 BounceBit are associated (or correlated) with AGVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGVC has no effect on the direction of BounceBit i.e., BounceBit and AGVC go up and down completely randomly.
Pair Corralation between BounceBit and AGVC
Assuming the 90 days horizon BounceBit is expected to generate 14.78 times more return on investment than AGVC. However, BounceBit is 14.78 times more volatile than AGVC. It trades about 0.04 of its potential returns per unit of risk. AGVC is currently generating about 0.07 per unit of risk. If you would invest 0.00 in BounceBit on November 1, 2024 and sell it today you would earn a total of 26.00 from holding BounceBit or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.85% |
| Values | Daily Returns |
BounceBit vs. AGVC
Performance |
| Timeline |
| BounceBit |
| AGVC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BounceBit and AGVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BounceBit and AGVC
The main advantage of trading using opposite BounceBit and AGVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BounceBit position performs unexpectedly, AGVC 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 AGVC will offset losses from the drop in AGVC's long position.The idea behind BounceBit and AGVC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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