Correlation Between First BITCoin and Coin Citadel
Can any of the company-specific risk be diversified away by investing in both First BITCoin and Coin Citadel 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 First BITCoin and Coin Citadel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First BITCoin Capital and Coin Citadel, you can compare the effects of market volatilities on First BITCoin and Coin Citadel 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 First BITCoin with a short position of Coin Citadel. Check out your portfolio center. Please also check ongoing floating volatility patterns of First BITCoin and Coin Citadel.
Diversification Opportunities for First BITCoin and Coin Citadel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Coin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First BITCoin Capital and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel and First BITCoin 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 First BITCoin Capital are associated (or correlated) with Coin Citadel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin Citadel has no effect on the direction of First BITCoin i.e., First BITCoin and Coin Citadel go up and down completely randomly.
Pair Corralation between First BITCoin and Coin Citadel
Assuming the 90 days horizon First BITCoin Capital is expected to generate 2.85 times more return on investment than Coin Citadel. However, First BITCoin is 2.85 times more volatile than Coin Citadel. It trades about 0.11 of its potential returns per unit of risk. Coin Citadel is currently generating about 0.12 per unit of risk. If you would invest 0.18 in First BITCoin Capital on August 30, 2024 and sell it today you would lose (0.17) from holding First BITCoin Capital or give up 94.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First BITCoin Capital vs. Coin Citadel
Performance |
| Timeline |
| First BITCoin Capital |
| Coin Citadel |
First BITCoin and Coin Citadel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First BITCoin and Coin Citadel
The main advantage of trading using opposite First BITCoin and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First BITCoin position performs unexpectedly, Coin Citadel 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 Coin Citadel will offset losses from the drop in Coin Citadel's long position.| First BITCoin vs. Woodbrook Group Holdings | First BITCoin vs. Cal Bay Intl | First BITCoin vs. LGBTQ Loyalty Holdings | First BITCoin vs. Sysorex |
| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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