Correlation Between Bitcoin and Yunnan Chuangxin
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By analyzing existing cross correlation between Bitcoin and Yunnan Chuangxin New, you can compare the effects of market volatilities on Bitcoin and Yunnan Chuangxin 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 Yunnan Chuangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Yunnan Chuangxin.
Diversification Opportunities for Bitcoin and Yunnan Chuangxin
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bitcoin and Yunnan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Yunnan Chuangxin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chuangxin New 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 Yunnan Chuangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chuangxin New has no effect on the direction of Bitcoin i.e., Bitcoin and Yunnan Chuangxin go up and down completely randomly.
Pair Corralation between Bitcoin and Yunnan Chuangxin
Assuming the 90 days trading horizon Bitcoin is expected to generate 1.6 times more return on investment than Yunnan Chuangxin. However, Bitcoin is 1.6 times more volatile than Yunnan Chuangxin New. It trades about -0.13 of its potential returns per unit of risk. Yunnan Chuangxin New is currently generating about -0.59 per unit of risk. If you would invest 10,140,300 in Bitcoin on October 14, 2024 and sell it today you would lose (683,305) from holding Bitcoin or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. Yunnan Chuangxin New
Performance |
| Timeline |
| Bitcoin |
| Yunnan Chuangxin New |
Bitcoin and Yunnan Chuangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Yunnan Chuangxin
The main advantage of trading using opposite Bitcoin and Yunnan Chuangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Yunnan Chuangxin 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 Yunnan Chuangxin will offset losses from the drop in Yunnan Chuangxin's long position.The idea behind Bitcoin and Yunnan Chuangxin New 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.| Yunnan Chuangxin vs. Pengxin International Mining | Yunnan Chuangxin vs. Zhengzhou Coal Mining | Yunnan Chuangxin vs. Xinhua Winshare Publishing | Yunnan Chuangxin vs. Changjiang Publishing Media |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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