Correlation Between Cathedra Bitcoin and Bitcoin Well
Can any of the company-specific risk be diversified away by investing in both Cathedra Bitcoin and Bitcoin Well 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 Cathedra Bitcoin and Bitcoin Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cathedra Bitcoin and Bitcoin Well, you can compare the effects of market volatilities on Cathedra Bitcoin and Bitcoin Well 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 Cathedra Bitcoin with a short position of Bitcoin Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathedra Bitcoin and Bitcoin Well.
Diversification Opportunities for Cathedra Bitcoin and Bitcoin Well
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cathedra and Bitcoin is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cathedra Bitcoin and Bitcoin Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Well and Cathedra 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 Cathedra Bitcoin are associated (or correlated) with Bitcoin Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Well has no effect on the direction of Cathedra Bitcoin i.e., Cathedra Bitcoin and Bitcoin Well go up and down completely randomly.
Pair Corralation between Cathedra Bitcoin and Bitcoin Well
Assuming the 90 days horizon Cathedra Bitcoin is expected to under-perform the Bitcoin Well. But the otc stock apears to be less risky and, when comparing its historical volatility, Cathedra Bitcoin is 2.11 times less risky than Bitcoin Well. The otc stock trades about -0.11 of its potential returns per unit of risk. The Bitcoin Well is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Bitcoin Well on August 29, 2024 and sell it today you would lose (1.00) from holding Bitcoin Well or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathedra Bitcoin vs. Bitcoin Well
Performance |
| Timeline |
| Cathedra Bitcoin |
| Bitcoin Well |
Cathedra Bitcoin and Bitcoin Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathedra Bitcoin and Bitcoin Well
The main advantage of trading using opposite Cathedra Bitcoin and Bitcoin Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathedra Bitcoin position performs unexpectedly, Bitcoin Well 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 Bitcoin Well will offset losses from the drop in Bitcoin Well's long position.| Cathedra Bitcoin vs. Arcane Crypto AB | Cathedra Bitcoin vs. Cypherpunk Holdings | Cathedra Bitcoin vs. CreditRiskMonitorCom | Cathedra Bitcoin vs. SPENN Technology AS |
| Bitcoin Well vs. SPENN Technology AS | Bitcoin Well vs. Arcane Crypto AB | Bitcoin Well vs. OFX Group Ltd | Bitcoin Well vs. Blockmate Ventures |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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