Correlation Between Bitcoin Cash and Hedera Hashgraph
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Hedera Hashgraph 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 Hedera Hashgraph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Hedera Hashgraph, you can compare the effects of market volatilities on Bitcoin Cash and Hedera Hashgraph 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 Hedera Hashgraph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Hedera Hashgraph.
Diversification Opportunities for Bitcoin Cash and Hedera Hashgraph
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and Hedera is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Hedera Hashgraph in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Hashgraph 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 Hedera Hashgraph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Hashgraph has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Hedera Hashgraph go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Hedera Hashgraph
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 1.06 times more return on investment than Hedera Hashgraph. However, Bitcoin Cash is 1.06 times more volatile than Hedera Hashgraph. It trades about -0.28 of its potential returns per unit of risk. Hedera Hashgraph is currently generating about -0.36 per unit of risk. If you would invest 41,042 in Bitcoin Cash on November 28, 2024 and sell it today you would lose (11,774) from holding Bitcoin Cash or give up 28.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Cash vs. Hedera Hashgraph
Performance |
| Timeline |
| Bitcoin Cash |
| Hedera Hashgraph |
Bitcoin Cash and Hedera Hashgraph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and Hedera Hashgraph
The main advantage of trading using opposite Bitcoin Cash and Hedera Hashgraph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Hedera Hashgraph 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 Hedera Hashgraph will offset losses from the drop in Hedera Hashgraph's long position.| Bitcoin Cash vs. Bitcoin Gold | Bitcoin Cash vs. Bitcoin SV | Bitcoin Cash vs. Staked Ether | Bitcoin Cash vs. Phala Network |
| Hedera Hashgraph vs. Staked Ether | Hedera Hashgraph vs. Phala Network | Hedera Hashgraph vs. EigenLayer | Hedera Hashgraph 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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