Correlation Between First BITCoin and GreenBank Capital
Can any of the company-specific risk be diversified away by investing in both First BITCoin and GreenBank Capital 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 GreenBank Capital 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 GreenBank Capital, you can compare the effects of market volatilities on First BITCoin and GreenBank Capital 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 GreenBank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First BITCoin and GreenBank Capital.
Diversification Opportunities for First BITCoin and GreenBank Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and GreenBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First BITCoin Capital and GreenBank Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenBank Capital 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 GreenBank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenBank Capital has no effect on the direction of First BITCoin i.e., First BITCoin and GreenBank Capital go up and down completely randomly.
Pair Corralation between First BITCoin and GreenBank Capital
Assuming the 90 days horizon First BITCoin Capital is expected to generate 1.35 times more return on investment than GreenBank Capital. However, First BITCoin is 1.35 times more volatile than GreenBank Capital. It trades about 0.11 of its potential returns per unit of risk. GreenBank Capital is currently generating about 0.12 per unit of risk. If you would invest 0.18 in First BITCoin Capital on August 29, 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. GreenBank Capital
Performance |
| Timeline |
| First BITCoin Capital |
| GreenBank Capital |
First BITCoin and GreenBank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First BITCoin and GreenBank Capital
The main advantage of trading using opposite First BITCoin and GreenBank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First BITCoin position performs unexpectedly, GreenBank Capital 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 GreenBank Capital will offset losses from the drop in GreenBank Capital'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 |
| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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