Correlation Between Bitcoin and Rani Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Rani Therapeutics 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 Rani Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Rani Therapeutics Holdings, you can compare the effects of market volatilities on Bitcoin and Rani Therapeutics 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 Rani Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Rani Therapeutics.
Diversification Opportunities for Bitcoin and Rani Therapeutics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitcoin and Rani is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Rani Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rani Therapeutics 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 Rani Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rani Therapeutics has no effect on the direction of Bitcoin i.e., Bitcoin and Rani Therapeutics go up and down completely randomly.
Pair Corralation between Bitcoin and Rani Therapeutics
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.5 times more return on investment than Rani Therapeutics. However, Bitcoin is 1.98 times less risky than Rani Therapeutics. It trades about 0.15 of its potential returns per unit of risk. Rani Therapeutics Holdings is currently generating about 0.03 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 | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bitcoin vs. Rani Therapeutics Holdings
Performance |
| Timeline |
| Bitcoin |
| Rani Therapeutics |
Bitcoin and Rani Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Rani Therapeutics
The main advantage of trading using opposite Bitcoin and Rani Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Rani Therapeutics 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 Rani Therapeutics will offset losses from the drop in Rani Therapeutics' long position.The idea behind Bitcoin and Rani Therapeutics Holdings 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.| Rani Therapeutics vs. Vincerx Pharma | Rani Therapeutics vs. Tenaya Therapeutics | Rani Therapeutics vs. Corvus Pharmaceuticals | Rani Therapeutics vs. Alx Oncology Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |