Correlation Between XTRA Bitcoin and Blockmate Ventures
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and Blockmate Ventures 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 Blockmate Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and Blockmate Ventures, you can compare the effects of market volatilities on XTRA Bitcoin and Blockmate Ventures 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 Blockmate Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and Blockmate Ventures.
Diversification Opportunities for XTRA Bitcoin and Blockmate Ventures
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XTRA and Blockmate is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and Blockmate Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockmate Ventures 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 Blockmate Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockmate Ventures has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and Blockmate Ventures go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and Blockmate Ventures
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 4.42 times less return on investment than Blockmate Ventures. But when comparing it to its historical volatility, XTRA Bitcoin is 1.88 times less risky than Blockmate Ventures. It trades about 0.13 of its potential returns per unit of risk. Blockmate Ventures is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2.92 in Blockmate Ventures on August 29, 2024 and sell it today you would earn a total of 6.18 from holding Blockmate Ventures or generate 211.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTRA Bitcoin vs. Blockmate Ventures
Performance |
| Timeline |
| XTRA Bitcoin |
| Blockmate Ventures |
XTRA Bitcoin and Blockmate Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and Blockmate Ventures
The main advantage of trading using opposite XTRA Bitcoin and Blockmate Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, Blockmate Ventures 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 Blockmate Ventures will offset losses from the drop in Blockmate Ventures' long position.| XTRA Bitcoin vs. Apple Inc | XTRA Bitcoin vs. Microsoft | XTRA Bitcoin vs. Alphabet Inc Class C | XTRA Bitcoin vs. Meta Platforms |
| Blockmate Ventures vs. SPENN Technology AS | Blockmate Ventures vs. OFX Group Ltd | Blockmate Ventures vs. APAC Resources Limited | Blockmate Ventures vs. Cypherpunk Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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