Correlation Between Bitcoin and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Polski Koncern 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 Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Polski Koncern Naftowy, you can compare the effects of market volatilities on Bitcoin and Polski Koncern 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 Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Polski Koncern.
Diversification Opportunities for Bitcoin and Polski Koncern
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitcoin and Polski is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy 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 Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Bitcoin i.e., Bitcoin and Polski Koncern go up and down completely randomly.
Pair Corralation between Bitcoin and Polski Koncern
Assuming the 90 days trading horizon Bitcoin is expected to generate 2.0 times less return on investment than Polski Koncern. In addition to that, Bitcoin is 1.62 times more volatile than Polski Koncern Naftowy. It trades about 0.17 of its total potential returns per unit of risk. Polski Koncern Naftowy is currently generating about 0.54 per unit of volatility. If you would invest 4,687 in Polski Koncern Naftowy on October 21, 2024 and sell it today you would earn a total of 563.00 from holding Polski Koncern Naftowy or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Bitcoin vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Bitcoin |
| Polski Koncern Naftowy |
Bitcoin and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Polski Koncern
The main advantage of trading using opposite Bitcoin and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.The idea behind Bitcoin and Polski Koncern Naftowy 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.| Polski Koncern vs. PZ Cormay SA | Polski Koncern vs. SOFTWARE MANSION SPOLKA | Polski Koncern vs. Santander Bank Polska | Polski Koncern vs. Centrum Finansowe Banku |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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