Correlation Between Bitcoin SV and VIA
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and VIA 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 VIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and VIA, you can compare the effects of market volatilities on Bitcoin SV and VIA 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 VIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and VIA.
Diversification Opportunities for Bitcoin SV and VIA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bitcoin and VIA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and VIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIA 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 VIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIA has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and VIA go up and down completely randomly.
Pair Corralation between Bitcoin SV and VIA
Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the VIA. In addition to that, Bitcoin SV is 2.37 times more volatile than VIA. It trades about -0.38 of its total potential returns per unit of risk. VIA is currently generating about -0.17 per unit of volatility. If you would invest 1.46 in VIA on November 18, 2024 and sell it today you would lose (0.09) from holding VIA or give up 6.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin SV vs. VIA
Performance |
| Timeline |
| Bitcoin SV |
| VIA |
Bitcoin SV and VIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and VIA
The main advantage of trading using opposite Bitcoin SV and VIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, VIA 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 VIA will offset losses from the drop in VIA'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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