Correlation Between Bitget Token and Magic Eden
Can any of the company-specific risk be diversified away by investing in both Bitget Token and Magic Eden 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 Bitget Token and Magic Eden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitget token and Magic Eden, you can compare the effects of market volatilities on Bitget Token and Magic Eden 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 Bitget Token with a short position of Magic Eden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitget Token and Magic Eden.
Diversification Opportunities for Bitget Token and Magic Eden
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitget and Magic is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bitget token and Magic Eden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Eden and Bitget Token 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 Bitget token are associated (or correlated) with Magic Eden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Eden has no effect on the direction of Bitget Token i.e., Bitget Token and Magic Eden go up and down completely randomly.
Pair Corralation between Bitget Token and Magic Eden
Assuming the 90 days trading horizon Bitget token is expected to generate 0.87 times more return on investment than Magic Eden. However, Bitget token is 1.16 times less risky than Magic Eden. It trades about -0.24 of its potential returns per unit of risk. Magic Eden is currently generating about -0.28 per unit of risk. If you would invest 641.00 in Bitget token on December 9, 2024 and sell it today you would lose (183.00) from holding Bitget token or give up 28.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitget token vs. Magic Eden
Performance |
| Timeline |
| Bitget token |
| Magic Eden |
Bitget Token and Magic Eden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitget Token and Magic Eden
The main advantage of trading using opposite Bitget Token and Magic Eden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitget Token position performs unexpectedly, Magic Eden 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 Magic Eden will offset losses from the drop in Magic Eden's long position.| Bitget Token vs. Staked Ether | ||
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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