Correlation Between Bitcoin and Taiji Computer
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By analyzing existing cross correlation between Bitcoin and Taiji Computer Corp, you can compare the effects of market volatilities on Bitcoin and Taiji Computer 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 with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Taiji Computer.
Diversification Opportunities for Bitcoin and Taiji Computer
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bitcoin and Taiji is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and Bitcoin 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 are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Bitcoin i.e., Bitcoin and Taiji Computer go up and down completely randomly.
Pair Corralation between Bitcoin and Taiji Computer
Assuming the 90 days trading horizon Bitcoin is expected to generate 1.13 times more return on investment than Taiji Computer. However, Bitcoin is 1.13 times more volatile than Taiji Computer Corp. It trades about -0.12 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.42 per unit of risk. If you would invest 10,140,300 in Bitcoin on October 14, 2024 and sell it today you would lose (669,120) from holding Bitcoin or give up 6.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. Taiji Computer Corp
Performance |
| Timeline |
| Bitcoin |
| Taiji Computer Corp |
Bitcoin and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Taiji Computer
The main advantage of trading using opposite Bitcoin and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.The idea behind Bitcoin and Taiji Computer Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Taiji Computer vs. Maoming Petro Chemical Shihua | Taiji Computer vs. Jinling Hotel Corp | Taiji Computer vs. Wuxi Chemical Equipment | Taiji Computer vs. Xiangtan Electrochemical Scientific |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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