Correlation Between WhiteBIT Token and Altlayer

Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and Altlayer 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 Altlayer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WhiteBIT Token and Altlayer, you can compare the effects of market volatilities on WhiteBIT Token and Altlayer 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 Altlayer. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and Altlayer.

Diversification Opportunities for WhiteBIT Token and Altlayer

-0.84

Correlation Coefficient

WhiteBIT Token  Altlayer

Pay attention - limited upside

The 3 months correlation between WhiteBIT and Altlayer is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and Altlayer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altlayer 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 Altlayer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altlayer has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and Altlayer go up and down completely randomly.

Pair Corralation between WhiteBIT Token and Altlayer

Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.24 times more return on investment than Altlayer. However, WhiteBIT Token is 4.09 times less risky than Altlayer. It trades about 0.13 of its potential returns per unit of risk. Altlayer is currently generating about -0.09 per unit of risk. If you would invest  849.00  in WhiteBIT Token on March 14, 2024 and sell it today you would earn a total of  124.00  from holding WhiteBIT Token or generate 14.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

WhiteBIT Token  vs.  Altlayer

WhiteBIT Token

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in WhiteBIT Token are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, WhiteBIT Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

Altlayer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altlayer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in July 2024. The latest tumult may also be a sign of longer-term up-swing for Altlayer shareholders.

Pair Trading with WhiteBIT Token and Altlayer

The main advantage of trading using opposite WhiteBIT Token and Altlayer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, Altlayer 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 Altlayer will offset losses from the drop in Altlayer's long position.

The idea behind WhiteBIT Token and Altlayer 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.