Correlation Between Bitcoin SV and Dogecoin
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and Dogecoin 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 Dogecoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and Dogecoin, you can compare the effects of market volatilities on Bitcoin SV and Dogecoin 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 Dogecoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and Dogecoin.
Diversification Opportunities for Bitcoin SV and Dogecoin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitcoin and Dogecoin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Dogecoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogecoin 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 Dogecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogecoin has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and Dogecoin go up and down completely randomly.
Pair Corralation between Bitcoin SV and Dogecoin
Assuming the 90 days trading horizon Bitcoin SV is expected to generate 0.86 times more return on investment than Dogecoin. However, Bitcoin SV is 1.16 times less risky than Dogecoin. It trades about -0.38 of its potential returns per unit of risk. Dogecoin is currently generating about -0.37 per unit of risk. If you would invest 5,589 in Bitcoin SV on November 18, 2024 and sell it today you would lose (1,649) from holding Bitcoin SV or give up 29.5% 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. Dogecoin
Performance |
| Timeline |
| Bitcoin SV |
| Dogecoin |
Bitcoin SV and Dogecoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and Dogecoin
The main advantage of trading using opposite Bitcoin SV and Dogecoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, Dogecoin 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 Dogecoin will offset losses from the drop in Dogecoin's long position.| Bitcoin SV vs. Bitcoin Gold | Bitcoin SV vs. Bitcoin Cash | Bitcoin SV vs. Staked Ether | Bitcoin SV 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |