Correlation Between BTCS and Global Arena
Can any of the company-specific risk be diversified away by investing in both BTCS and Global Arena 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 BTCS and Global Arena into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTCS Inc and Global Arena Holding, you can compare the effects of market volatilities on BTCS and Global Arena 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 BTCS with a short position of Global Arena. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCS and Global Arena.
Diversification Opportunities for BTCS and Global Arena
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTCS and Global is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding BTCS Inc and Global Arena Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Arena Holding and BTCS 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 BTCS Inc are associated (or correlated) with Global Arena. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Arena Holding has no effect on the direction of BTCS i.e., BTCS and Global Arena go up and down completely randomly.
Pair Corralation between BTCS and Global Arena
If you would invest 131.00 in BTCS Inc on August 30, 2024 and sell it today you would earn a total of 246.00 from holding BTCS Inc or generate 187.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
BTCS Inc vs. Global Arena Holding
Performance |
| Timeline |
| BTCS Inc |
| Global Arena Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BTCS and Global Arena Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTCS and Global Arena
The main advantage of trading using opposite BTCS and Global Arena positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTCS position performs unexpectedly, Global Arena 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 Global Arena will offset losses from the drop in Global Arena's long position.The idea behind BTCS Inc and Global Arena Holding 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.| Global Arena vs. Pushfor Investments | Global Arena vs. KwikClick | Global Arena vs. Appswarm | Global Arena vs. AB International Group |
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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