Correlation Between STKD Bitcoin and Freedom Day

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Can any of the company-specific risk be diversified away by investing in both STKD Bitcoin and Freedom Day 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 Freedom Day 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 Freedom Day Dividend, you can compare the effects of market volatilities on STKD Bitcoin and Freedom Day 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 Freedom Day. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKD Bitcoin and Freedom Day.

Diversification Opportunities for STKD Bitcoin and Freedom Day

STKDFreedomDiversified AwaySTKDFreedomDiversified Away100%
0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between STKD and Freedom is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding STKD Bitcoin Gold and Freedom Day Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Day Dividend 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 Freedom Day. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Day Dividend has no effect on the direction of STKD Bitcoin i.e., STKD Bitcoin and Freedom Day go up and down completely randomly.

Pair Corralation between STKD Bitcoin and Freedom Day

Given the investment horizon of 90 days STKD Bitcoin Gold is expected to generate 4.59 times more return on investment than Freedom Day. However, STKD Bitcoin is 4.59 times more volatile than Freedom Day Dividend. It trades about 0.28 of its potential returns per unit of risk. Freedom Day Dividend is currently generating about 0.08 per unit of risk. If you would invest  2,034  in STKD Bitcoin Gold on September 19, 2024 and sell it today you would earn a total of  1,043  from holding STKD Bitcoin Gold or generate 51.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy8.87%
ValuesDaily Returns

STKD Bitcoin Gold  vs.  Freedom Day Dividend

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -30-20-100
JavaScript chart by amCharts 3.21.15BTGD MBOX
       Timeline  
STKD Bitcoin Gold 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in STKD Bitcoin Gold are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, STKD Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15Oct 21Oct 28Nov 04Nov 11Nov 18Nov 25Dec 02Dec 09Dec 16Oct 28Nov 04Nov 11Nov 18Nov 25Dec 02Dec 09Dec 1620222426283032
Freedom Day Dividend 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Freedom Day Dividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Freedom Day is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec33.53434.53535.5

STKD Bitcoin and Freedom Day Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.86-8.13-5.41-2.680.033.076.29.3212.45 0.20.40.60.8
JavaScript chart by amCharts 3.21.15BTGD MBOX
       Returns  

Pair Trading with STKD Bitcoin and Freedom Day

The main advantage of trading using opposite STKD Bitcoin and Freedom Day positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKD Bitcoin position performs unexpectedly, Freedom Day 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 Freedom Day will offset losses from the drop in Freedom Day's long position.
The idea behind STKD Bitcoin Gold and Freedom Day Dividend 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.
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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