Correlation Between BTC Digital and Installed Building
Can any of the company-specific risk be diversified away by investing in both BTC Digital and Installed Building 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 BTC Digital and Installed Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTC Digital and Installed Building Products, you can compare the effects of market volatilities on BTC Digital and Installed Building 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 BTC Digital with a short position of Installed Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Digital and Installed Building.
Diversification Opportunities for BTC Digital and Installed Building
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BTC and Installed is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BTC Digital and Installed Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Installed Building and BTC Digital 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 BTC Digital are associated (or correlated) with Installed Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Installed Building has no effect on the direction of BTC Digital i.e., BTC Digital and Installed Building go up and down completely randomly.
Pair Corralation between BTC Digital and Installed Building
Assuming the 90 days horizon BTC Digital is expected to generate 18.56 times more return on investment than Installed Building. However, BTC Digital is 18.56 times more volatile than Installed Building Products. It trades about 0.29 of its potential returns per unit of risk. Installed Building Products is currently generating about -0.08 per unit of risk. If you would invest 1.88 in BTC Digital on August 24, 2024 and sell it today you would earn a total of 6.12 from holding BTC Digital or generate 325.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
BTC Digital vs. Installed Building Products
Performance |
| Timeline |
| BTC Digital |
| Installed Building |
BTC Digital and Installed Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Digital and Installed Building
The main advantage of trading using opposite BTC Digital and Installed Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Digital position performs unexpectedly, Installed Building 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 Installed Building will offset losses from the drop in Installed Building's long position.| BTC Digital vs. TAL Education Group | BTC Digital vs. Strategic Education | BTC Digital vs. Vasta Platform | BTC Digital vs. Afya |
| Installed Building vs. Century Communities | Installed Building vs. MI Homes | Installed Building vs. Taylor Morn Home | Installed Building vs. TRI Pointe Homes |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |