Correlation Between Bitcoin SV and GRS
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and GRS 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 GRS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and GRS, you can compare the effects of market volatilities on Bitcoin SV and GRS 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 GRS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and GRS.
Diversification Opportunities for Bitcoin SV and GRS
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and GRS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and GRS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRS 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 GRS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRS has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and GRS go up and down completely randomly.
Pair Corralation between Bitcoin SV and GRS
Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the GRS. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin SV is 1.29 times less risky than GRS. The crypto coin trades about -0.37 of its potential returns per unit of risk. The GRS is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 43.00 in GRS on November 28, 2024 and sell it today you would lose (6.00) from holding GRS or give up 13.95% 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. GRS
Performance |
| Timeline |
| Bitcoin SV |
| GRS |
Bitcoin SV and GRS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and GRS
The main advantage of trading using opposite Bitcoin SV and GRS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, GRS 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 GRS will offset losses from the drop in GRS'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |