Correlation Between Toncoin and BEZ

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

By analyzing existing cross correlation between Toncoin and BEZ, you can compare the effects of market volatilities on Toncoin and BEZ 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 Toncoin with a short position of BEZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Toncoin and BEZ.

Diversification Opportunities for Toncoin and BEZ

0.0

Correlation Coefficient

Toncoin  BEZ

Pay attention - limited upside

The 3 months correlation between Toncoin and BEZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Toncoin and BEZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEZ and Toncoin 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 Toncoin are associated (or correlated) with BEZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEZ has no effect on the direction of Toncoin i.e., Toncoin and BEZ go up and down completely randomly.

Pair Corralation between Toncoin and BEZ

If you would invest (100.00) in BEZ on December 26, 2024 and sell it today you would earn a total of  100.00  from holding BEZ or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Toncoin  vs.  BEZ

Toncoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Toncoin 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 April 2025. The latest tumult may also be a sign of longer-term up-swing for Toncoin shareholders.

BEZ

Risk-Adjusted Performance

Very Weak

Over the last 90 days BEZ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BEZ is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Toncoin and BEZ

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

The idea behind Toncoin and BEZ 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.