Correlation Between Bitcoin and Baywa AG
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By analyzing existing cross correlation between Bitcoin and Baywa AG Vink, you can compare the effects of market volatilities on Bitcoin and Baywa AG 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 Baywa AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Baywa AG.
Diversification Opportunities for Bitcoin and Baywa AG
Significant diversification
The 3 months correlation between Bitcoin and Baywa is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Baywa AG Vink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baywa AG Vink 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 Baywa AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baywa AG Vink has no effect on the direction of Bitcoin i.e., Bitcoin and Baywa AG go up and down completely randomly.
Pair Corralation between Bitcoin and Baywa AG
Assuming the 90 days trading horizon Bitcoin is expected to generate 2.34 times more return on investment than Baywa AG. However, Bitcoin is 2.34 times more volatile than Baywa AG Vink. It trades about 0.09 of its potential returns per unit of risk. Baywa AG Vink is currently generating about -0.06 per unit of risk. If you would invest 2,220,856 in Bitcoin on November 2, 2024 and sell it today you would earn a total of 8,264,644 from holding Bitcoin or generate 372.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 59.48% |
Values | Daily Returns |
Bitcoin vs. Baywa AG Vink
Performance |
Timeline |
Bitcoin |
Baywa AG Vink |
Bitcoin and Baywa AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin and Baywa AG
The main advantage of trading using opposite Bitcoin and Baywa AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Baywa AG 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 Baywa AG will offset losses from the drop in Baywa AG's long position.The idea behind Bitcoin and Baywa AG Vink 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.Baywa AG vs. Caseys General Stores | Baywa AG vs. COSTCO WHOLESALE CDR | Baywa AG vs. TELECOM ITALIA | Baywa AG vs. BJs Wholesale Club |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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