Correlation Between Bitcoin and 11 Bit
Can any of the company-specific risk be diversified away by investing in both Bitcoin and 11 Bit 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 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and 11 bit studios, you can compare the effects of market volatilities on Bitcoin and 11 Bit 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 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and 11 Bit.
Diversification Opportunities for Bitcoin and 11 Bit
Very good diversification
The 3 months correlation between Bitcoin and 11B is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios 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 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of Bitcoin i.e., Bitcoin and 11 Bit go up and down completely randomly.
Pair Corralation between Bitcoin and 11 Bit
Assuming the 90 days trading horizon Bitcoin is expected to generate 1.33 times less return on investment than 11 Bit. But when comparing it to its historical volatility, Bitcoin is 1.3 times less risky than 11 Bit. It trades about 0.17 of its potential returns per unit of risk. 11 bit studios is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 17,720 in 11 bit studios on November 2, 2024 and sell it today you would earn a total of 1,520 from holding 11 bit studios or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bitcoin vs. 11 bit studios
Performance |
| Timeline |
| Bitcoin |
| 11 bit studios |
Bitcoin and 11 Bit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and 11 Bit
The main advantage of trading using opposite Bitcoin and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.The idea behind Bitcoin and 11 bit studios 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.| 11 Bit vs. SOFTWARE MANSION SPOLKA | 11 Bit vs. Creotech Instruments SA | 11 Bit vs. Centrum Finansowe Banku | 11 Bit vs. Enter Air SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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