Correlation Between Bitcoin Gold and Bitcoin SV
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and Bitcoin SV 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 Gold and Bitcoin SV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and Bitcoin SV, you can compare the effects of market volatilities on Bitcoin Gold and Bitcoin SV 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 Gold with a short position of Bitcoin SV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and Bitcoin SV.
Diversification Opportunities for Bitcoin Gold and Bitcoin SV
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitcoin and Bitcoin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV and Bitcoin Gold 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 Gold are associated (or correlated) with Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and Bitcoin SV go up and down completely randomly.
Pair Corralation between Bitcoin Gold and Bitcoin SV
Assuming the 90 days trading horizon Bitcoin Gold is expected to generate 1.74 times more return on investment than Bitcoin SV. However, Bitcoin Gold is 1.74 times more volatile than Bitcoin SV. It trades about 0.05 of its potential returns per unit of risk. Bitcoin SV is currently generating about 0.05 per unit of risk. If you would invest 1,499 in Bitcoin Gold on August 24, 2024 and sell it today you would earn a total of 1,677 from holding Bitcoin Gold or generate 111.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Gold vs. Bitcoin SV
Performance |
| Timeline |
| Bitcoin Gold |
| Bitcoin SV |
Bitcoin Gold and Bitcoin SV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Gold and Bitcoin SV
The main advantage of trading using opposite Bitcoin Gold and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, Bitcoin SV 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 Bitcoin SV will offset losses from the drop in Bitcoin SV's long position.| Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Bitcoin SV | Bitcoin Gold vs. Staked Ether | Bitcoin Gold vs. EigenLayer |
| Bitcoin SV vs. Bitcoin Gold | Bitcoin SV vs. Bitcoin Cash | Bitcoin SV vs. Staked Ether | Bitcoin SV vs. EigenLayer |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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