Correlation Between BITM and REDLANG
Specify exactly 2 symbols:
By analyzing existing cross correlation between BITM and REDLANG, you can compare the effects of market volatilities on BITM and REDLANG 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 BITM with a short position of REDLANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BITM and REDLANG.
Diversification Opportunities for BITM and REDLANG
Average diversification
The 3 months correlation between BITM and REDLANG is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BITM and REDLANG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDLANG and BITM 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 BITM are associated (or correlated) with REDLANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDLANG has no effect on the direction of BITM i.e., BITM and REDLANG go up and down completely randomly.
Pair Corralation between BITM and REDLANG
If you would invest 0.09 in REDLANG on August 25, 2024 and sell it today you would earn a total of 0.02 from holding REDLANG or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
BITM vs. REDLANG
Performance |
| Timeline |
| BITM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| REDLANG |
BITM and REDLANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BITM and REDLANG
The main advantage of trading using opposite BITM and REDLANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BITM position performs unexpectedly, REDLANG 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 REDLANG will offset losses from the drop in REDLANG's long position.The idea behind BITM and REDLANG 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.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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |