Correlation Between Bit Origin and Coinbase Global
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Coinbase Global 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 Bit Origin and Coinbase Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Coinbase Global, you can compare the effects of market volatilities on Bit Origin and Coinbase Global 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 Bit Origin with a short position of Coinbase Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Coinbase Global.
Diversification Opportunities for Bit Origin and Coinbase Global
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bit and Coinbase is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Coinbase Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Global and Bit Origin 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 Bit Origin are associated (or correlated) with Coinbase Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Global has no effect on the direction of Bit Origin i.e., Bit Origin and Coinbase Global go up and down completely randomly.
Pair Corralation between Bit Origin and Coinbase Global
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Coinbase Global. But the stock apears to be less risky and, when comparing its historical volatility, Bit Origin is 1.23 times less risky than Coinbase Global. The stock trades about -0.15 of its potential returns per unit of risk. The Coinbase Global is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 16,310 in Coinbase Global on September 3, 2024 and sell it today you would earn a total of 13,310 from holding Coinbase Global or generate 81.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bit Origin vs. Coinbase Global
Performance |
| Timeline |
| Bit Origin |
| Coinbase Global |
Bit Origin and Coinbase Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Coinbase Global
The main advantage of trading using opposite Bit Origin and Coinbase Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Coinbase Global 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 Coinbase Global will offset losses from the drop in Coinbase Global's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Coinbase Global vs. Moodys | Coinbase Global vs. MSCI Inc | Coinbase Global vs. Intercontinental Exchange | Coinbase Global vs. CME Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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