Correlation Between Bitcoin SV and Bitcoin Gold
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and Bitcoin Gold 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 Bitcoin SV and Bitcoin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and Bitcoin Gold, you can compare the effects of market volatilities on Bitcoin SV and Bitcoin Gold 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 Bitcoin SV with a short position of Bitcoin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and Bitcoin Gold.
Diversification Opportunities for Bitcoin SV and Bitcoin Gold
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitcoin and Bitcoin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and Bitcoin SV 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 Bitcoin SV are associated (or correlated) with Bitcoin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Gold has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and Bitcoin Gold go up and down completely randomly.
Pair Corralation between Bitcoin SV and Bitcoin Gold
Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the Bitcoin Gold. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin SV is 5.44 times less risky than Bitcoin Gold. The crypto coin trades about -0.38 of its potential returns per unit of risk. The Bitcoin Gold is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Bitcoin Gold on November 18, 2024 and sell it today you would lose (419.00) from holding Bitcoin Gold or give up 38.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin SV vs. Bitcoin Gold
Performance |
| Timeline |
| Bitcoin SV |
| Bitcoin Gold |
Bitcoin SV and Bitcoin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and Bitcoin Gold
The main advantage of trading using opposite Bitcoin SV and Bitcoin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, Bitcoin Gold 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 Bitcoin Gold will offset losses from the drop in Bitcoin Gold's long position.| Bitcoin SV vs. Bitcoin Gold | Bitcoin SV vs. Bitcoin Cash | Bitcoin SV vs. Staked Ether | Bitcoin SV vs. Phala Network |
| Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Bitcoin SV | Bitcoin Gold vs. Staked Ether | Bitcoin Gold vs. Phala Network |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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