Correlation Between STKD Bitcoin and Dow Jones
Can any of the company-specific risk be diversified away by investing in both STKD Bitcoin and Dow Jones 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 STKD Bitcoin and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STKD Bitcoin Gold and Dow Jones Industrial, you can compare the effects of market volatilities on STKD Bitcoin and Dow Jones 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 STKD Bitcoin with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKD Bitcoin and Dow Jones.
Diversification Opportunities for STKD Bitcoin and Dow Jones
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STKD and Dow is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding STKD Bitcoin Gold and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and STKD 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 STKD Bitcoin Gold are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of STKD Bitcoin i.e., STKD Bitcoin and Dow Jones go up and down completely randomly.
Pair Corralation between STKD Bitcoin and Dow Jones
Given the investment horizon of 90 days STKD Bitcoin Gold is expected to generate 7.02 times more return on investment than Dow Jones. However, STKD Bitcoin is 7.02 times more volatile than Dow Jones Industrial. It trades about 0.2 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 2,661 in STKD Bitcoin Gold on September 18, 2024 and sell it today you would earn a total of 404.00 from holding STKD Bitcoin Gold or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
STKD Bitcoin Gold vs. Dow Jones Industrial
Performance |
| Timeline |
STKD Bitcoin and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
STKD Bitcoin Gold
Pair trading matchups for STKD Bitcoin
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with STKD Bitcoin and Dow Jones
The main advantage of trading using opposite STKD Bitcoin and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKD Bitcoin position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| STKD Bitcoin vs. Freedom Day Dividend | STKD Bitcoin vs. Franklin Templeton ETF | STKD Bitcoin vs. iShares MSCI China | STKD Bitcoin vs. Tidal Trust II |
| Dow Jones vs. Commonwealth Bank of | Dow Jones vs. AmTrust Financial Services | Dow Jones vs. Forsys Metals Corp | Dow Jones vs. Juniata Valley Financial |
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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