Correlation Between BitFrontier Capital and Dow Jones
Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital and Dow Jones 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 BitFrontier Capital and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFrontier Capital Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on BitFrontier Capital and Dow Jones 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 BitFrontier Capital with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and Dow Jones.
Diversification Opportunities for BitFrontier Capital and Dow Jones
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BitFrontier and Dow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and BitFrontier Capital 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 BitFrontier Capital Holdings are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and Dow Jones go up and down completely randomly.
Pair Corralation between BitFrontier Capital and Dow Jones
Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to generate 19.51 times more return on investment than Dow Jones. However, BitFrontier Capital is 19.51 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 0.75 in BitFrontier Capital Holdings on August 29, 2024 and sell it today you would lose (0.47) from holding BitFrontier Capital Holdings or give up 62.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
BitFrontier Capital Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
BitFrontier Capital and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BitFrontier Capital Holdings
Pair trading matchups for BitFrontier Capital
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BitFrontier Capital and Dow Jones
The main advantage of trading using opposite BitFrontier Capital and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| BitFrontier Capital vs. XTRA Bitcoin | BitFrontier Capital vs. Coin Citadel | BitFrontier Capital vs. Dmg Blockchain Solutions | BitFrontier Capital vs. Argo Blockchain PLC |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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