Correlation Between Bitcoin and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Bitcoin and FUTURE GAMING 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 FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and FUTURE GAMING GRP, you can compare the effects of market volatilities on Bitcoin and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and FUTURE GAMING.
Diversification Opportunities for Bitcoin and FUTURE GAMING
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitcoin and FUTURE is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Bitcoin i.e., Bitcoin and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Bitcoin and FUTURE GAMING
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.52 times more return on investment than FUTURE GAMING. However, Bitcoin is 1.93 times less risky than FUTURE GAMING. It trades about 0.17 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about -0.31 per unit of risk. If you would invest 9,813,580 in Bitcoin on November 2, 2024 and sell it today you would earn a total of 671,920 from holding Bitcoin or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Bitcoin |
| FUTURE GAMING GRP |
Bitcoin and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and FUTURE GAMING
The main advantage of trading using opposite Bitcoin and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.The idea behind Bitcoin and FUTURE GAMING GRP 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.| FUTURE GAMING vs. ANTA SPORTS PRODUCT | FUTURE GAMING vs. Fuji Media Holdings | FUTURE GAMING vs. THAI BEVERAGE | FUTURE GAMING vs. MOLSON RS BEVERAGE |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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