Correlation Between Bitcoin Cash and NLG
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and NLG 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 NLG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and NLG, you can compare the effects of market volatilities on Bitcoin Cash and NLG 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 NLG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and NLG.
Diversification Opportunities for Bitcoin Cash and NLG
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and NLG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and NLG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NLG 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 NLG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NLG has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and NLG go up and down completely randomly.
Pair Corralation between Bitcoin Cash and NLG
If you would invest 35,189 in Bitcoin Cash on August 26, 2024 and sell it today you would earn a total of 15,858 from holding Bitcoin Cash or generate 45.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Bitcoin Cash vs. NLG
Performance |
| Timeline |
| Bitcoin Cash |
| NLG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitcoin Cash and NLG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and NLG
The main advantage of trading using opposite Bitcoin Cash and NLG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, NLG 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 NLG will offset losses from the drop in NLG'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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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