Correlation Between Bitcoin and OMGC
Can any of the company-specific risk be diversified away by investing in both Bitcoin and OMGC 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 OMGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and OMGC, you can compare the effects of market volatilities on Bitcoin and OMGC 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 OMGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and OMGC.
Diversification Opportunities for Bitcoin and OMGC
Pay attention - limited upside
The 3 months correlation between Bitcoin and OMGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and OMGC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMGC 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 OMGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMGC has no effect on the direction of Bitcoin i.e., Bitcoin and OMGC go up and down completely randomly.
Pair Corralation between Bitcoin and OMGC
If you would invest 6,586,867 in Bitcoin on August 28, 2024 and sell it today you would earn a total of 2,647,183 from holding Bitcoin or generate 40.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bitcoin vs. OMGC
Performance |
| Timeline |
| Bitcoin |
| OMGC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitcoin and OMGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and OMGC
The main advantage of trading using opposite Bitcoin and OMGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, OMGC 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 OMGC will offset losses from the drop in OMGC's long position.The idea behind Bitcoin and OMGC 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.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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