Correlation Between XTRA Bitcoin and OFX Group
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and OFX Group 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 OFX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and OFX Group Ltd, you can compare the effects of market volatilities on XTRA Bitcoin and OFX Group 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 OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and OFX Group.
Diversification Opportunities for XTRA Bitcoin and OFX Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XTRA and OFX is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group 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 OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and OFX Group go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and OFX Group
If you would invest 0.09 in XTRA Bitcoin on November 27, 2024 and sell it today you would earn a total of 0.01 from holding XTRA Bitcoin or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTRA Bitcoin vs. OFX Group Ltd
Performance |
| Timeline |
| XTRA Bitcoin |
| OFX Group |
XTRA Bitcoin and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and OFX Group
The main advantage of trading using opposite XTRA Bitcoin and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| XTRA Bitcoin vs. Coin Citadel | XTRA Bitcoin vs. ICOA Inc | XTRA Bitcoin vs. NSAV Holding | XTRA Bitcoin vs. Lion Group Holding |
| OFX Group vs. Alternative Investment | OFX Group vs. Luxfer Holdings PLC | OFX Group vs. Freedom Holding Corp | OFX Group vs. NL Industries |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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