Correlation Between Inolife Technologies and XTRA Bitcoin
Can any of the company-specific risk be diversified away by investing in both Inolife Technologies and XTRA Bitcoin 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 Inolife Technologies and XTRA Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inolife Technologies and XTRA Bitcoin, you can compare the effects of market volatilities on Inolife Technologies and XTRA Bitcoin 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 Inolife Technologies with a short position of XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inolife Technologies and XTRA Bitcoin.
Diversification Opportunities for Inolife Technologies and XTRA Bitcoin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inolife and XTRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inolife Technologies and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin and Inolife Technologies 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 Inolife Technologies are associated (or correlated) with XTRA Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRA Bitcoin has no effect on the direction of Inolife Technologies i.e., Inolife Technologies and XTRA Bitcoin go up and down completely randomly.
Pair Corralation between Inolife Technologies and XTRA Bitcoin
Given the investment horizon of 90 days Inolife Technologies is expected to generate 1.61 times less return on investment than XTRA Bitcoin. In addition to that, Inolife Technologies is 1.1 times more volatile than XTRA Bitcoin. It trades about 0.02 of its total potential returns per unit of risk. XTRA Bitcoin is currently generating about 0.04 per unit of volatility. If you would invest 0.19 in XTRA Bitcoin on August 29, 2024 and sell it today you would lose (0.05) from holding XTRA Bitcoin or give up 26.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inolife Technologies vs. XTRA Bitcoin
Performance |
| Timeline |
| Inolife Technologies |
| XTRA Bitcoin |
Inolife Technologies and XTRA Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inolife Technologies and XTRA Bitcoin
The main advantage of trading using opposite Inolife Technologies and XTRA Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inolife Technologies position performs unexpectedly, XTRA Bitcoin 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 XTRA Bitcoin will offset losses from the drop in XTRA Bitcoin's long position.| Inolife Technologies vs. Halitron | Inolife Technologies vs. Cal Bay Intl | Inolife Technologies vs. LGBTQ Loyalty Holdings | Inolife Technologies vs. XTRA Bitcoin |
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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..
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