Correlation Between Cathedra Bitcoin and EBullion
Can any of the company-specific risk be diversified away by investing in both Cathedra Bitcoin and EBullion 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 EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cathedra Bitcoin and EBullion, you can compare the effects of market volatilities on Cathedra Bitcoin and EBullion 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 EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathedra Bitcoin and EBullion.
Diversification Opportunities for Cathedra Bitcoin and EBullion
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cathedra and EBullion is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cathedra Bitcoin and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion 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 EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of Cathedra Bitcoin i.e., Cathedra Bitcoin and EBullion go up and down completely randomly.
Pair Corralation between Cathedra Bitcoin and EBullion
If you would invest 0.12 in EBullion on October 21, 2024 and sell it today you would earn a total of 0.00 from holding EBullion or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Cathedra Bitcoin vs. EBullion
Performance |
| Timeline |
| Cathedra Bitcoin |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cathedra Bitcoin and EBullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathedra Bitcoin and EBullion
The main advantage of trading using opposite Cathedra Bitcoin and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathedra Bitcoin position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.| Cathedra Bitcoin vs. Arcane Crypto AB | Cathedra Bitcoin vs. Cypherpunk Holdings | Cathedra Bitcoin vs. CreditRiskMonitorCom | Cathedra Bitcoin vs. SPENN Technology AS |
| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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