Correlation Between XTRA Bitcoin and Woodbrook Group
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and Woodbrook 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 Woodbrook 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 Woodbrook Group Holdings, you can compare the effects of market volatilities on XTRA Bitcoin and Woodbrook 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 Woodbrook Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and Woodbrook Group.
Diversification Opportunities for XTRA Bitcoin and Woodbrook Group
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XTRA and Woodbrook is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and Woodbrook Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodbrook Group Holdings 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 Woodbrook Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodbrook Group Holdings has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and Woodbrook Group go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and Woodbrook Group
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 6.24 times less return on investment than Woodbrook Group. But when comparing it to its historical volatility, XTRA Bitcoin is 3.49 times less risky than Woodbrook Group. It trades about 0.04 of its potential returns per unit of risk. Woodbrook Group Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.66 in Woodbrook Group Holdings on August 26, 2024 and sell it today you would earn a total of 4.46 from holding Woodbrook Group Holdings or generate 675.76% 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. Woodbrook Group Holdings
Performance |
| Timeline |
| XTRA Bitcoin |
| Woodbrook Group Holdings |
XTRA Bitcoin and Woodbrook Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and Woodbrook Group
The main advantage of trading using opposite XTRA Bitcoin and Woodbrook Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, Woodbrook 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 Woodbrook Group will offset losses from the drop in Woodbrook Group'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 |
| Woodbrook Group vs. Morgan Stanley | Woodbrook Group vs. Goldman Sachs Group | Woodbrook Group vs. Charles Schwab Corp | Woodbrook Group vs. Interactive Brokers Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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