Correlation Between Bitcoin SV and Conflux Network
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and Conflux Network 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 Conflux Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and Conflux Network, you can compare the effects of market volatilities on Bitcoin SV and Conflux Network 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 Conflux Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and Conflux Network.
Diversification Opportunities for Bitcoin SV and Conflux Network
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Conflux is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Conflux Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conflux Network 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 Conflux Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conflux Network has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and Conflux Network go up and down completely randomly.
Pair Corralation between Bitcoin SV and Conflux Network
Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the Conflux Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin SV is 1.76 times less risky than Conflux Network. The crypto coin trades about -0.38 of its potential returns per unit of risk. The Conflux Network is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Conflux Network on November 18, 2024 and sell it today you would lose (5.00) from holding Conflux Network or give up 29.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin SV vs. Conflux Network
Performance |
| Timeline |
| Bitcoin SV |
| Conflux Network |
Bitcoin SV and Conflux Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and Conflux Network
The main advantage of trading using opposite Bitcoin SV and Conflux Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, Conflux Network 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 Conflux Network will offset losses from the drop in Conflux Network's long position.| Bitcoin SV vs. Bitcoin Gold | Bitcoin SV vs. Bitcoin Cash | Bitcoin SV vs. Staked Ether | Bitcoin SV vs. Phala Network |
| Conflux Network vs. Staked Ether | Conflux Network vs. Phala Network | Conflux Network vs. EigenLayer | Conflux Network vs. EOSDAC |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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