Correlation Between Bitcoin and Ingenic Semiconductor
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By analyzing existing cross correlation between Bitcoin and Ingenic Semiconductor, you can compare the effects of market volatilities on Bitcoin and Ingenic Semiconductor 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 Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Ingenic Semiconductor.
Diversification Opportunities for Bitcoin and Ingenic Semiconductor
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bitcoin and Ingenic is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Bitcoin i.e., Bitcoin and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Bitcoin and Ingenic Semiconductor
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.77 times more return on investment than Ingenic Semiconductor. However, Bitcoin is 1.29 times less risky than Ingenic Semiconductor. It trades about -0.14 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about -0.16 per unit of risk. If you would invest 10,004,200 in Bitcoin on October 12, 2024 and sell it today you would lose (743,501) from holding Bitcoin or give up 7.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. Ingenic Semiconductor
Performance |
| Timeline |
| Bitcoin |
| Ingenic Semiconductor |
Bitcoin and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Ingenic Semiconductor
The main advantage of trading using opposite Bitcoin and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.The idea behind Bitcoin and Ingenic Semiconductor 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.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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