Correlation Between XTRA Bitcoin and Pinetree Capital
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and Pinetree 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 Pinetree 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 Pinetree Capital, you can compare the effects of market volatilities on XTRA Bitcoin and Pinetree 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 Pinetree Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and Pinetree Capital.
Diversification Opportunities for XTRA Bitcoin and Pinetree Capital
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XTRA and Pinetree is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree 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 Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and Pinetree Capital go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and Pinetree Capital
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 4.28 times more return on investment than Pinetree Capital. However, XTRA Bitcoin is 4.28 times more volatile than Pinetree Capital. It trades about 0.13 of its potential returns per unit of risk. Pinetree Capital is currently generating about 0.2 per unit of risk. If you would invest 0.13 in XTRA Bitcoin on August 29, 2024 and sell it today you would earn a total of 0.03 from holding XTRA Bitcoin or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTRA Bitcoin vs. Pinetree Capital
Performance |
| Timeline |
| XTRA Bitcoin |
| Pinetree Capital |
XTRA Bitcoin and Pinetree Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and Pinetree Capital
The main advantage of trading using opposite XTRA Bitcoin and Pinetree Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, Pinetree 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 Pinetree Capital will offset losses from the drop in Pinetree 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 |
| Pinetree Capital vs. Invesco High Income | Pinetree Capital vs. Blackrock Muniholdings Ny | Pinetree Capital vs. Nuveen California Select | Pinetree Capital vs. MFS Investment Grade |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |