Correlation Between Bitcoin and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Natixis Sustainable 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 Natixis Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Natixis Sustainable Future, you can compare the effects of market volatilities on Bitcoin and Natixis Sustainable 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 Natixis Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Natixis Sustainable.
Diversification Opportunities for Bitcoin and Natixis Sustainable
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and Natixis is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable 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 Natixis Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Sustainable has no effect on the direction of Bitcoin i.e., Bitcoin and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Bitcoin and Natixis Sustainable
Assuming the 90 days trading horizon Bitcoin is expected to generate 1.83 times more return on investment than Natixis Sustainable. However, Bitcoin is 1.83 times more volatile than Natixis Sustainable Future. It trades about 0.17 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about -0.1 per unit of risk. If you would invest 9,722,339 in Bitcoin on October 21, 2024 and sell it today you would earn a total of 713,361 from holding Bitcoin or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bitcoin vs. Natixis Sustainable Future
Performance |
| Timeline |
| Bitcoin |
| Natixis Sustainable |
Bitcoin and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Natixis Sustainable
The main advantage of trading using opposite Bitcoin and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Natixis Sustainable 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 Natixis Sustainable will offset losses from the drop in Natixis Sustainable's long position.The idea behind Bitcoin and Natixis Sustainable Future 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.| Natixis Sustainable vs. Touchstone Large Cap | Natixis Sustainable vs. Ab Large Cap | Natixis Sustainable vs. Transamerica Large Cap | Natixis Sustainable vs. Qs Large Cap |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance |