Correlation Between Bitcoin and Grand Investment
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Grand Investment 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 Grand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Grand Investment Capital, you can compare the effects of market volatilities on Bitcoin and Grand Investment 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 Grand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Grand Investment.
Diversification Opportunities for Bitcoin and Grand Investment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and Grand is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Grand Investment Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Investment Capital 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 Grand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Investment Capital has no effect on the direction of Bitcoin i.e., Bitcoin and Grand Investment go up and down completely randomly.
Pair Corralation between Bitcoin and Grand Investment
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.74 times more return on investment than Grand Investment. However, Bitcoin is 1.36 times less risky than Grand Investment. It trades about 0.17 of its potential returns per unit of risk. Grand Investment Capital is currently generating about 0.02 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 Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Bitcoin vs. Grand Investment Capital
Performance |
| Timeline |
| Bitcoin |
| Grand Investment Capital |
Bitcoin and Grand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Grand Investment
The main advantage of trading using opposite Bitcoin and Grand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Grand Investment 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 Grand Investment will offset losses from the drop in Grand Investment's long position.The idea behind Bitcoin and Grand Investment Capital 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.| Grand Investment vs. Cleopatra Hospital | Grand Investment vs. Natural Gas Mining | Grand Investment vs. Arabia Investments Holding | Grand Investment vs. AJWA for Food |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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