Correlation Between STKD Bitcoin and Freedom Day
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
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between STKD and Freedom is 0.23. 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 4.6 times more return on investment than Freedom Day. However, STKD Bitcoin is 4.6 times more volatile than Freedom Day Dividend. It trades about 0.18 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 2,031 in STKD Bitcoin Gold on October 25, 2024 and sell it today you would earn a total of 1,009 from holding STKD Bitcoin Gold or generate 49.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.56% |
| Values | Daily Returns |
STKD Bitcoin Gold vs. Freedom Day Dividend
Performance |
| Timeline |
| STKD Bitcoin Gold |
| Freedom Day Dividend |
STKD Bitcoin and Freedom Day Volatility Contrast
Predicted Return Density |
| 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.| STKD Bitcoin vs. Freedom Day Dividend | STKD Bitcoin vs. Franklin Templeton ETF | STKD Bitcoin vs. iShares MSCI China | STKD Bitcoin vs. Tidal Trust II |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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