Correlation Between Bitcoin and Green Resources
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Green Resources 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 Green Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Green Resources Public, you can compare the effects of market volatilities on Bitcoin and Green Resources 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 Green Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Green Resources.
Diversification Opportunities for Bitcoin and Green Resources
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bitcoin and Green is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Green Resources Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Resources Public 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 Green Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Resources Public has no effect on the direction of Bitcoin i.e., Bitcoin and Green Resources go up and down completely randomly.
Pair Corralation between Bitcoin and Green Resources
Assuming the 90 days trading horizon Bitcoin is expected to generate 2.62 times less return on investment than Green Resources. But when comparing it to its historical volatility, Bitcoin is 5.57 times less risky than Green Resources. It trades about 0.09 of its potential returns per unit of risk. Green Resources Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Green Resources Public on November 2, 2024 and sell it today you would lose (16.00) from holding Green Resources Public or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 62.08% |
| Values | Daily Returns |
Bitcoin vs. Green Resources Public
Performance |
| Timeline |
| Bitcoin |
| Green Resources Public |
Bitcoin and Green Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Green Resources
The main advantage of trading using opposite Bitcoin and Green Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Green Resources 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 Green Resources will offset losses from the drop in Green Resources' long position.The idea behind Bitcoin and Green Resources Public 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.| Green Resources vs. Ekarat Engineering Public | Green Resources vs. Global Power Synergy | Green Resources vs. BCPG Public | Green Resources vs. IRPC Public |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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