Correlation Between Bitget Token and Parcl

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Can any of the company-specific risk be diversified away by investing in both Bitget Token and Parcl 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 Parcl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitget token and Parcl, you can compare the effects of market volatilities on Bitget Token and Parcl 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 Parcl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitget Token and Parcl.

Diversification Opportunities for Bitget Token and Parcl

BitgetParclDiversified AwayBitgetParclDiversified Away100%
-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Bitget and Parcl is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bitget token and Parcl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parcl 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 Parcl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parcl has no effect on the direction of Bitget Token i.e., Bitget Token and Parcl go up and down completely randomly.

Pair Corralation between Bitget Token and Parcl

Assuming the 90 days trading horizon Bitget token is expected to under-perform the Parcl. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitget token is 2.29 times less risky than Parcl. The crypto coin trades about -0.47 of its potential returns per unit of risk. The Parcl is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Parcl on November 29, 2024 and sell it today you would lose (8.00) from holding Parcl or give up 34.78% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Bitget token  vs.  Parcl

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0100200300400
JavaScript chart by amCharts 3.21.15BGB PRCL
       Timeline  
Bitget token 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bitget token are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Bitget Token exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb2345678
Parcl 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Parcl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for Parcl shareholders.
JavaScript chart by amCharts 3.21.15JanFebFeb0.20.30.40.50.60.7

Bitget Token and Parcl Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-26.31-19.71-13.1-6.5-0.117.0514.3421.6328.9236.21 0.00400.00450.0050
JavaScript chart by amCharts 3.21.15BGB PRCL
       Returns  

Pair Trading with Bitget Token and Parcl

The main advantage of trading using opposite Bitget Token and Parcl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitget Token position performs unexpectedly, Parcl 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 Parcl will offset losses from the drop in Parcl's long position.
The idea behind Bitget token and Parcl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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