Correlation Between ClimateRock and BTCS
Can any of the company-specific risk be diversified away by investing in both ClimateRock and BTCS 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 ClimateRock and BTCS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClimateRock Class A and BTCS Inc, you can compare the effects of market volatilities on ClimateRock and BTCS 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 ClimateRock with a short position of BTCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and BTCS.
Diversification Opportunities for ClimateRock and BTCS
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ClimateRock and BTCS is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and BTCS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTCS Inc and ClimateRock 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 ClimateRock Class A are associated (or correlated) with BTCS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTCS Inc has no effect on the direction of ClimateRock i.e., ClimateRock and BTCS go up and down completely randomly.
Pair Corralation between ClimateRock and BTCS
Given the investment horizon of 90 days ClimateRock is expected to generate 21.49 times less return on investment than BTCS. But when comparing it to its historical volatility, ClimateRock Class A is 21.21 times less risky than BTCS. It trades about 0.07 of its potential returns per unit of risk. BTCS Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 113.00 in BTCS Inc on September 2, 2024 and sell it today you would earn a total of 243.00 from holding BTCS Inc or generate 215.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ClimateRock Class A vs. BTCS Inc
Performance |
| Timeline |
| ClimateRock Class |
| BTCS Inc |
ClimateRock and BTCS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and BTCS
The main advantage of trading using opposite ClimateRock and BTCS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, BTCS 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 BTCS will offset losses from the drop in BTCS's long position.| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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