Correlation Between Creek Road and First BITCoin
Can any of the company-specific risk be diversified away by investing in both Creek Road and First BITCoin 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 Creek Road and First BITCoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creek Road Miners and First BITCoin Capital, you can compare the effects of market volatilities on Creek Road and First BITCoin 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 Creek Road with a short position of First BITCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creek Road and First BITCoin.
Diversification Opportunities for Creek Road and First BITCoin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Creek and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Creek Road Miners and First BITCoin Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First BITCoin Capital and Creek Road 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 Creek Road Miners are associated (or correlated) with First BITCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First BITCoin Capital has no effect on the direction of Creek Road i.e., Creek Road and First BITCoin go up and down completely randomly.
Pair Corralation between Creek Road and First BITCoin
Given the investment horizon of 90 days Creek Road is expected to generate 4.16 times less return on investment than First BITCoin. But when comparing it to its historical volatility, Creek Road Miners is 6.16 times less risky than First BITCoin. It trades about 0.18 of its potential returns per unit of risk. First BITCoin Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.10 in First BITCoin Capital on August 26, 2024 and sell it today you would lose (0.09) from holding First BITCoin Capital or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 14.21% |
| Values | Daily Returns |
Creek Road Miners vs. First BITCoin Capital
Performance |
| Timeline |
| Creek Road Miners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First BITCoin Capital |
Creek Road and First BITCoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creek Road and First BITCoin
The main advantage of trading using opposite Creek Road and First BITCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creek Road position performs unexpectedly, First BITCoin 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 First BITCoin will offset losses from the drop in First BITCoin's long position.| Creek Road vs. Cryomass Technologies | Creek Road vs. Global Helium Corp | Creek Road vs. Optimi Health Corp | Creek Road vs. Draganfly |
| First BITCoin vs. Woodbrook Group Holdings | First BITCoin vs. Cal Bay Intl | First BITCoin vs. LGBTQ Loyalty Holdings | First BITCoin vs. Sysorex |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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