Correlation Between Bitcoin and Asturiana
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Asturiana 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 Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Asturiana de Laminados, you can compare the effects of market volatilities on Bitcoin and Asturiana 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 Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Asturiana.
Diversification Opportunities for Bitcoin and Asturiana
Modest diversification
The 3 months correlation between Bitcoin and Asturiana is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Asturiana de Laminados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asturiana de Laminados 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 Asturiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asturiana de Laminados has no effect on the direction of Bitcoin i.e., Bitcoin and Asturiana go up and down completely randomly.
Pair Corralation between Bitcoin and Asturiana
Assuming the 90 days trading horizon Bitcoin is expected to generate 12.47 times less return on investment than Asturiana. But when comparing it to its historical volatility, Bitcoin is 15.18 times less risky than Asturiana. It trades about 0.17 of its potential returns per unit of risk. Asturiana de Laminados is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9.12 in Asturiana de Laminados on November 2, 2024 and sell it today you would earn a total of 2.88 from holding Asturiana de Laminados or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. Asturiana de Laminados
Performance |
| Timeline |
| Bitcoin |
| Asturiana de Laminados |
Bitcoin and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Asturiana
The main advantage of trading using opposite Bitcoin and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Asturiana 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 Asturiana will offset losses from the drop in Asturiana's long position.The idea behind Bitcoin and Asturiana de Laminados 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.| Asturiana vs. ACS Actividades de | Asturiana vs. Naturhouse Health SA | Asturiana vs. Metrovacesa SA | Asturiana vs. Elecnor 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |