Correlation Between Bitcoin and Dongwoon Anatech
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Dongwoon Anatech 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 and Dongwoon Anatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Dongwoon Anatech Co, you can compare the effects of market volatilities on Bitcoin and Dongwoon Anatech 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 Dongwoon Anatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Dongwoon Anatech.
Diversification Opportunities for Bitcoin and Dongwoon Anatech
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bitcoin and Dongwoon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Dongwoon Anatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoon Anatech 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 Dongwoon Anatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoon Anatech has no effect on the direction of Bitcoin i.e., Bitcoin and Dongwoon Anatech go up and down completely randomly.
Pair Corralation between Bitcoin and Dongwoon Anatech
Assuming the 90 days trading horizon Bitcoin is expected to generate 1.58 times more return on investment than Dongwoon Anatech. However, Bitcoin is 1.58 times more volatile than Dongwoon Anatech Co. It trades about 0.08 of its potential returns per unit of risk. Dongwoon Anatech Co is currently generating about 0.06 per unit of risk. If you would invest 2,300,915 in Bitcoin on October 16, 2024 and sell it today you would earn a total of 7,401,338 from holding Bitcoin or generate 321.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.83% |
| Values | Daily Returns |
Bitcoin vs. Dongwoon Anatech Co
Performance |
| Timeline |
| Bitcoin |
| Dongwoon Anatech |
Bitcoin and Dongwoon Anatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Dongwoon Anatech
The main advantage of trading using opposite Bitcoin and Dongwoon Anatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Dongwoon Anatech 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 Dongwoon Anatech will offset losses from the drop in Dongwoon Anatech's long position.The idea behind Bitcoin and Dongwoon Anatech Co 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.| Dongwoon Anatech vs. SK Hynix | Dongwoon Anatech vs. LX Semicon Co | Dongwoon Anatech vs. Tokai Carbon Korea | Dongwoon Anatech vs. People Technology |
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.
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