Correlation Between WhiteBIT Token and AKRO
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and AKRO 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 WhiteBIT Token and AKRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and AKRO, you can compare the effects of market volatilities on WhiteBIT Token and AKRO 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 WhiteBIT Token with a short position of AKRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and AKRO.
Diversification Opportunities for WhiteBIT Token and AKRO
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WhiteBIT and AKRO is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and AKRO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKRO and WhiteBIT Token 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 WhiteBIT Token are associated (or correlated) with AKRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKRO has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and AKRO go up and down completely randomly.
Pair Corralation between WhiteBIT Token and AKRO
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.2 times more return on investment than AKRO. However, WhiteBIT Token is 5.06 times less risky than AKRO. It trades about 0.15 of its potential returns per unit of risk. AKRO is currently generating about -0.11 per unit of risk. If you would invest 2,655 in WhiteBIT Token on November 8, 2024 and sell it today you would earn a total of 108.00 from holding WhiteBIT Token or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteBIT Token vs. AKRO
Performance |
| Timeline |
| WhiteBIT Token |
| AKRO |
WhiteBIT Token and AKRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and AKRO
The main advantage of trading using opposite WhiteBIT Token and AKRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, AKRO 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 AKRO will offset losses from the drop in AKRO's long position.| WhiteBIT Token vs. XRP | WhiteBIT Token vs. Solana | WhiteBIT Token vs. Sui | WhiteBIT Token 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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