Correlation Between Bitcoin Cash and EMERCOIN
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By analyzing existing cross correlation between Bitcoin Cash and EMERCOIN, you can compare the effects of market volatilities on Bitcoin Cash and EMERCOIN 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 EMERCOIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and EMERCOIN.
Diversification Opportunities for Bitcoin Cash and EMERCOIN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bitcoin and EMERCOIN is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and EMERCOIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERCOIN 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 EMERCOIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERCOIN has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and EMERCOIN go up and down completely randomly.
Pair Corralation between Bitcoin Cash and EMERCOIN
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 6.22 times less return on investment than EMERCOIN. But when comparing it to its historical volatility, Bitcoin Cash is 7.81 times less risky than EMERCOIN. It trades about 0.33 of its potential returns per unit of risk. EMERCOIN is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.33 in EMERCOIN on August 25, 2024 and sell it today you would earn a total of 0.66 from holding EMERCOIN or generate 197.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bitcoin Cash vs. EMERCOIN
Performance |
| Timeline |
| Bitcoin Cash |
| EMERCOIN |
Bitcoin Cash and EMERCOIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and EMERCOIN
The main advantage of trading using opposite Bitcoin Cash and EMERCOIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, EMERCOIN 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 EMERCOIN will offset losses from the drop in EMERCOIN's long position.| Bitcoin Cash vs. Bitcoin Gold | Bitcoin Cash vs. Bitcoin SV | Bitcoin Cash vs. Staked Ether | Bitcoin Cash vs. EigenLayer |
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.
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