Correlation Between BTC Health and Microba Life
Can any of the company-specific risk be diversified away by investing in both BTC Health and Microba Life 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 BTC Health and Microba Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTC Health Limited and Microba Life Sciences, you can compare the effects of market volatilities on BTC Health and Microba Life 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 BTC Health with a short position of Microba Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and Microba Life.
Diversification Opportunities for BTC Health and Microba Life
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BTC and Microba is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and Microba Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microba Life Sciences and BTC Health 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 BTC Health Limited are associated (or correlated) with Microba Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microba Life Sciences has no effect on the direction of BTC Health i.e., BTC Health and Microba Life go up and down completely randomly.
Pair Corralation between BTC Health and Microba Life
Assuming the 90 days trading horizon BTC Health Limited is expected to generate 0.93 times more return on investment than Microba Life. However, BTC Health Limited is 1.07 times less risky than Microba Life. It trades about 0.21 of its potential returns per unit of risk. Microba Life Sciences is currently generating about 0.13 per unit of risk. If you would invest 5.50 in BTC Health Limited on September 20, 2024 and sell it today you would earn a total of 1.00 from holding BTC Health Limited or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BTC Health Limited vs. Microba Life Sciences
Performance |
| Timeline |
| BTC Health Limited |
| Microba Life Sciences |
BTC Health and Microba Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and Microba Life
The main advantage of trading using opposite BTC Health and Microba Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, Microba Life 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 Microba Life will offset losses from the drop in Microba Life's long position.| BTC Health vs. REGAL ASIAN INVESTMENTS | BTC Health vs. Legacy Iron Ore | BTC Health vs. MFF Capital Investments | BTC Health vs. Auctus Alternative Investments |
| Microba Life vs. BTC Health Limited | Microba Life vs. Epsilon Healthcare | Microba Life vs. Healthco Healthcare and | Microba Life vs. Fisher Paykel Healthcare |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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