Correlation Between XTRA Bitcoin and MGT Capital
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and MGT 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 MGT 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 MGT Capital Investments, you can compare the effects of market volatilities on XTRA Bitcoin and MGT 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 MGT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and MGT Capital.
Diversification Opportunities for XTRA Bitcoin and MGT Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between XTRA and MGT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and MGT Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGT Capital Investments 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 MGT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGT Capital Investments has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and MGT Capital go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and MGT Capital
If you would invest 0.13 in XTRA Bitcoin on August 26, 2024 and sell it today you would earn a total of 0.02 from holding XTRA Bitcoin or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
XTRA Bitcoin vs. MGT Capital Investments
Performance |
| Timeline |
| XTRA Bitcoin |
| MGT Capital Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XTRA Bitcoin and MGT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and MGT Capital
The main advantage of trading using opposite XTRA Bitcoin and MGT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, MGT 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 MGT Capital will offset losses from the drop in MGT Capital'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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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