Correlation Between Bitcoin SV and Ethereum Classic
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and Ethereum Classic 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 Ethereum Classic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and Ethereum Classic, you can compare the effects of market volatilities on Bitcoin SV and Ethereum Classic 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 Ethereum Classic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and Ethereum Classic.
Diversification Opportunities for Bitcoin SV and Ethereum Classic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Ethereum is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Ethereum Classic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethereum Classic 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 Ethereum Classic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethereum Classic has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and Ethereum Classic go up and down completely randomly.
Pair Corralation between Bitcoin SV and Ethereum Classic
Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the Ethereum Classic. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin SV is 1.32 times less risky than Ethereum Classic. The crypto coin trades about -0.38 of its potential returns per unit of risk. The Ethereum Classic is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 2,689 in Ethereum Classic on November 18, 2024 and sell it today you would lose (607.00) from holding Ethereum Classic or give up 22.57% 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. Ethereum Classic
Performance |
| Timeline |
| Bitcoin SV |
| Ethereum Classic |
Bitcoin SV and Ethereum Classic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and Ethereum Classic
The main advantage of trading using opposite Bitcoin SV and Ethereum Classic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, Ethereum Classic 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 Ethereum Classic will offset losses from the drop in Ethereum Classic's long position.| Bitcoin SV vs. Bitcoin Gold | Bitcoin SV vs. Bitcoin Cash | Bitcoin SV vs. Staked Ether | Bitcoin SV vs. Phala Network |
| Ethereum Classic vs. Ethereum PoW | Ethereum Classic vs. Ethereum Name Service | Ethereum Classic vs. Staked Ether | Ethereum Classic 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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