Correlation Between Bitcoin Cash and Conflux Network
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Conflux Network 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 Bitcoin Cash and Conflux Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Conflux Network, you can compare the effects of market volatilities on Bitcoin Cash and Conflux Network 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 Bitcoin Cash with a short position of Conflux Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Conflux Network.
Diversification Opportunities for Bitcoin Cash and Conflux Network
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Conflux is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Conflux Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conflux Network and Bitcoin Cash 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 Bitcoin Cash are associated (or correlated) with Conflux Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conflux Network has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Conflux Network go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Conflux Network
Assuming the 90 days trading horizon Bitcoin Cash is expected to under-perform the Conflux Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin Cash is 1.27 times less risky than Conflux Network. The crypto coin trades about -0.01 of its potential returns per unit of risk. The Conflux Network is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Conflux Network on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Conflux Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Cash vs. Conflux Network
Performance |
| Timeline |
| Bitcoin Cash |
| Conflux Network |
Bitcoin Cash and Conflux Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and Conflux Network
The main advantage of trading using opposite Bitcoin Cash and Conflux Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Conflux Network 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 Conflux Network will offset losses from the drop in Conflux Network's long position.| Bitcoin Cash vs. Bitcoin Gold | Bitcoin Cash vs. Bitcoin SV | Bitcoin Cash vs. Staked Ether | Bitcoin Cash vs. Phala Network |
| Conflux Network vs. Staked Ether | Conflux Network vs. Phala Network | Conflux Network vs. EigenLayer | Conflux Network vs. EOSDAC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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