Correlation Between XTRA Bitcoin and GreenBank Capital
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and GreenBank Capital 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 GreenBank Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and GreenBank Capital, you can compare the effects of market volatilities on XTRA Bitcoin and GreenBank Capital 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 GreenBank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and GreenBank Capital.
Diversification Opportunities for XTRA Bitcoin and GreenBank Capital
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XTRA and GreenBank is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and GreenBank Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenBank Capital 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 GreenBank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenBank Capital has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and GreenBank Capital go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and GreenBank Capital
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 20.92 times less return on investment than GreenBank Capital. But when comparing it to its historical volatility, XTRA Bitcoin is 7.15 times less risky than GreenBank Capital. It trades about 0.04 of its potential returns per unit of risk. GreenBank Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9.04 in GreenBank Capital on August 30, 2024 and sell it today you would lose (8.17) from holding GreenBank Capital or give up 90.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTRA Bitcoin vs. GreenBank Capital
Performance |
| Timeline |
| XTRA Bitcoin |
| GreenBank Capital |
XTRA Bitcoin and GreenBank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and GreenBank Capital
The main advantage of trading using opposite XTRA Bitcoin and GreenBank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, GreenBank Capital 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 GreenBank Capital will offset losses from the drop in GreenBank Capital's long position.| XTRA Bitcoin vs. Apple Inc | XTRA Bitcoin vs. Microsoft | XTRA Bitcoin vs. Alphabet Inc Class C | XTRA Bitcoin vs. Meta Platforms |
| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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