Correlation Between Bitcoin and La Comer
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By analyzing existing cross correlation between Bitcoin and La Comer SAB, you can compare the effects of market volatilities on Bitcoin and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and La Comer.
Diversification Opportunities for Bitcoin and La Comer
Pay attention - limited upside
The 3 months correlation between Bitcoin and LACOMERUBC is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer SAB 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of Bitcoin i.e., Bitcoin and La Comer go up and down completely randomly.
Pair Corralation between Bitcoin and La Comer
Assuming the 90 days trading horizon Bitcoin is expected to generate 1.18 times more return on investment than La Comer. However, Bitcoin is 1.18 times more volatile than La Comer SAB. It trades about 0.15 of its potential returns per unit of risk. La Comer SAB is currently generating about -0.14 per unit of risk. If you would invest 9,776,949 in Bitcoin on October 20, 2024 and sell it today you would earn a total of 658,751 from holding Bitcoin or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bitcoin vs. La Comer SAB
Performance |
| Timeline |
| Bitcoin |
| La Comer SAB |
Bitcoin and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and La Comer
The main advantage of trading using opposite Bitcoin and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.The idea behind Bitcoin and La Comer SAB 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.| La Comer vs. Grupo Comercial Chedraui | La Comer vs. Gentera SAB de | La Comer vs. El Puerto de | La Comer vs. Organizacin Soriana S |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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