Correlation Between Conflux Network and Bitcoin Gold
Can any of the company-specific risk be diversified away by investing in both Conflux Network and Bitcoin Gold 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 Conflux Network and Bitcoin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conflux Network and Bitcoin Gold, you can compare the effects of market volatilities on Conflux Network and Bitcoin Gold 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 Conflux Network with a short position of Bitcoin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conflux Network and Bitcoin Gold.
Diversification Opportunities for Conflux Network and Bitcoin Gold
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Conflux and Bitcoin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Conflux Network and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and Conflux Network 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 Conflux Network are associated (or correlated) with Bitcoin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Gold has no effect on the direction of Conflux Network i.e., Conflux Network and Bitcoin Gold go up and down completely randomly.
Pair Corralation between Conflux Network and Bitcoin Gold
Assuming the 90 days trading horizon Conflux Network is expected to under-perform the Bitcoin Gold. But the crypto coin apears to be less risky and, when comparing its historical volatility, Conflux Network is 3.09 times less risky than Bitcoin Gold. The crypto coin trades about -0.19 of its potential returns per unit of risk. The Bitcoin Gold is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Bitcoin Gold on November 18, 2024 and sell it today you would lose (419.00) from holding Bitcoin Gold or give up 38.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conflux Network vs. Bitcoin Gold
Performance |
| Timeline |
| Conflux Network |
| Bitcoin Gold |
Conflux Network and Bitcoin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conflux Network and Bitcoin Gold
The main advantage of trading using opposite Conflux Network and Bitcoin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conflux Network position performs unexpectedly, Bitcoin Gold 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 Gold will offset losses from the drop in Bitcoin Gold's long position.| Conflux Network vs. Staked Ether | Conflux Network vs. Phala Network | Conflux Network vs. EigenLayer | Conflux Network vs. EOSDAC |
| Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Bitcoin SV | Bitcoin Gold vs. Staked Ether | Bitcoin Gold vs. Phala Network |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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