Correlation Between Galaxy Digital and Cathedra Bitcoin
Can any of the company-specific risk be diversified away by investing in both Galaxy Digital and Cathedra Bitcoin 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 Galaxy Digital and Cathedra Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Digital Holdings and Cathedra Bitcoin, you can compare the effects of market volatilities on Galaxy Digital and Cathedra Bitcoin 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 Galaxy Digital with a short position of Cathedra Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Digital and Cathedra Bitcoin.
Diversification Opportunities for Galaxy Digital and Cathedra Bitcoin
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galaxy and Cathedra is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Digital Holdings and Cathedra Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathedra Bitcoin and Galaxy Digital 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 Galaxy Digital Holdings are associated (or correlated) with Cathedra Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathedra Bitcoin has no effect on the direction of Galaxy Digital i.e., Galaxy Digital and Cathedra Bitcoin go up and down completely randomly.
Pair Corralation between Galaxy Digital and Cathedra Bitcoin
Assuming the 90 days horizon Galaxy Digital Holdings is expected to generate 1.42 times more return on investment than Cathedra Bitcoin. However, Galaxy Digital is 1.42 times more volatile than Cathedra Bitcoin. It trades about 0.18 of its potential returns per unit of risk. Cathedra Bitcoin is currently generating about -0.13 per unit of risk. If you would invest 1,384 in Galaxy Digital Holdings on August 30, 2024 and sell it today you would earn a total of 398.00 from holding Galaxy Digital Holdings or generate 28.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Digital Holdings vs. Cathedra Bitcoin
Performance |
| Timeline |
| Galaxy Digital Holdings |
| Cathedra Bitcoin |
Galaxy Digital and Cathedra Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Digital and Cathedra Bitcoin
The main advantage of trading using opposite Galaxy Digital and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Digital position performs unexpectedly, Cathedra Bitcoin 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 Cathedra Bitcoin will offset losses from the drop in Cathedra Bitcoin's long position.| Galaxy Digital vs. SPENN Technology AS | Galaxy Digital vs. OFX Group Ltd | Galaxy Digital vs. Cypherpunk Holdings | Galaxy Digital vs. Cathedra Bitcoin |
| Cathedra Bitcoin vs. Arcane Crypto AB | Cathedra Bitcoin vs. Cypherpunk Holdings | Cathedra Bitcoin vs. CreditRiskMonitorCom | Cathedra Bitcoin vs. SPENN Technology AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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