Correlation Between Bitcoin and Ultimovacs ASA
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Ultimovacs ASA 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 Ultimovacs ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Ultimovacs ASA, you can compare the effects of market volatilities on Bitcoin and Ultimovacs ASA 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 Ultimovacs ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Ultimovacs ASA.
Diversification Opportunities for Bitcoin and Ultimovacs ASA
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and Ultimovacs is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Ultimovacs ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimovacs ASA 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 Ultimovacs ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimovacs ASA has no effect on the direction of Bitcoin i.e., Bitcoin and Ultimovacs ASA go up and down completely randomly.
Pair Corralation between Bitcoin and Ultimovacs ASA
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.75 times more return on investment than Ultimovacs ASA. However, Bitcoin is 1.33 times less risky than Ultimovacs ASA. It trades about 0.17 of its potential returns per unit of risk. Ultimovacs ASA is currently generating about -0.17 per unit of risk. If you would invest 9,813,580 in Bitcoin on November 2, 2024 and sell it today you would earn a total of 671,920 from holding Bitcoin or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. Ultimovacs ASA
Performance |
| Timeline |
| Bitcoin |
| Ultimovacs ASA |
Bitcoin and Ultimovacs ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Ultimovacs ASA
The main advantage of trading using opposite Bitcoin and Ultimovacs ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Ultimovacs ASA 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 Ultimovacs ASA will offset losses from the drop in Ultimovacs ASA's long position.The idea behind Bitcoin and Ultimovacs ASA 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.| Ultimovacs ASA vs. Bergenbio ASA | Ultimovacs ASA vs. Nykode Therapeutics ASA | Ultimovacs ASA vs. PCI Biotech Holding |
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 CEOs Directory module to screen CEOs from public companies around the world.
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