Correlation Between XRP and BAG Films
Specify exactly 2 symbols:
By analyzing existing cross correlation between XRP and BAG Films and, you can compare the effects of market volatilities on XRP and BAG Films 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 XRP with a short position of BAG Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and BAG Films.
Diversification Opportunities for XRP and BAG Films
Very good diversification
The 3 months correlation between XRP and BAG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding XRP and BAG Films and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAG Films and XRP 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 XRP are associated (or correlated) with BAG Films. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAG Films has no effect on the direction of XRP i.e., XRP and BAG Films go up and down completely randomly.
Pair Corralation between XRP and BAG Films
Assuming the 90 days trading horizon XRP is expected to generate 1.96 times more return on investment than BAG Films. However, XRP is 1.96 times more volatile than BAG Films and. It trades about 0.3 of its potential returns per unit of risk. BAG Films and is currently generating about -0.04 per unit of risk. If you would invest 59.00 in XRP on October 18, 2024 and sell it today you would earn a total of 251.00 from holding XRP or generate 425.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.47% |
| Values | Daily Returns |
XRP vs. BAG Films and
Performance |
| Timeline |
| XRP |
| BAG Films |
XRP and BAG Films Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and BAG Films
The main advantage of trading using opposite XRP and BAG Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP position performs unexpectedly, BAG Films 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 BAG Films will offset losses from the drop in BAG Films' long position.The idea behind XRP and BAG Films and 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.| BAG Films vs. State Bank of | BAG Films vs. Life Insurance | BAG Films vs. HDFC Bank Limited | BAG Films vs. ICICI Bank Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |