Correlation Between XTRA Bitcoin and Rogue Station
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and Rogue Station 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 Rogue Station into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and Rogue Station Companies, you can compare the effects of market volatilities on XTRA Bitcoin and Rogue Station 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 Rogue Station. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and Rogue Station.
Diversification Opportunities for XTRA Bitcoin and Rogue Station
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XTRA and Rogue is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and Rogue Station Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogue Station Companies 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 Rogue Station. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogue Station Companies has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and Rogue Station go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and Rogue Station
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 232.17 times less return on investment than Rogue Station. But when comparing it to its historical volatility, XTRA Bitcoin is 28.13 times less risky than Rogue Station. It trades about 0.04 of its potential returns per unit of risk. Rogue Station Companies is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Rogue Station Companies on August 29, 2024 and sell it today you would lose (61.73) from holding Rogue Station Companies or give up 90.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
XTRA Bitcoin vs. Rogue Station Companies
Performance |
| Timeline |
| XTRA Bitcoin |
| Rogue Station Companies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
XTRA Bitcoin and Rogue Station Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and Rogue Station
The main advantage of trading using opposite XTRA Bitcoin and Rogue Station positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, Rogue Station 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 Rogue Station will offset losses from the drop in Rogue Station's long position.| XTRA Bitcoin vs. Apple Inc | XTRA Bitcoin vs. Microsoft | XTRA Bitcoin vs. Alphabet Inc Class C | XTRA Bitcoin vs. Meta Platforms |
| Rogue Station vs. XTRA Bitcoin | Rogue Station vs. Helix Applications | Rogue Station vs. GreenBank Capital | Rogue Station vs. Cal Bay Intl |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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