Correlation Between XTRA Bitcoin and GiveMePower Corp
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and GiveMePower Corp 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 XTRA Bitcoin and GiveMePower Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and GiveMePower Corp, you can compare the effects of market volatilities on XTRA Bitcoin and GiveMePower Corp 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 XTRA Bitcoin with a short position of GiveMePower Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and GiveMePower Corp.
Diversification Opportunities for XTRA Bitcoin and GiveMePower Corp
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XTRA and GiveMePower is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and GiveMePower Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiveMePower Corp and XTRA 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 XTRA Bitcoin are associated (or correlated) with GiveMePower Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiveMePower Corp has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and GiveMePower Corp go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and GiveMePower Corp
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 2.01 times less return on investment than GiveMePower Corp. But when comparing it to its historical volatility, XTRA Bitcoin is 1.72 times less risky than GiveMePower Corp. It trades about 0.04 of its potential returns per unit of risk. GiveMePower Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5.70 in GiveMePower Corp on August 26, 2024 and sell it today you would lose (5.20) from holding GiveMePower Corp or give up 91.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTRA Bitcoin vs. GiveMePower Corp
Performance |
| Timeline |
| XTRA Bitcoin |
| GiveMePower Corp |
XTRA Bitcoin and GiveMePower Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and GiveMePower Corp
The main advantage of trading using opposite XTRA Bitcoin and GiveMePower Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, GiveMePower Corp 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 GiveMePower Corp will offset losses from the drop in GiveMePower Corp's long position.| XTRA Bitcoin vs. Copa Holdings SA | XTRA Bitcoin vs. United Airlines Holdings | XTRA Bitcoin vs. Delta Air Lines | XTRA Bitcoin vs. SkyWest |
| GiveMePower Corp vs. Boxlight Corp Class | GiveMePower Corp vs. Siyata Mobile | GiveMePower Corp vs. ClearOne | GiveMePower Corp vs. HUMANA INC |
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 Stocks Directory module to find actively traded stocks across global markets.
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