Correlation Between EBullion and Bitcoin Well
Can any of the company-specific risk be diversified away by investing in both EBullion 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 EBullion and Bitcoin Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBullion and Bitcoin Well, you can compare the effects of market volatilities on EBullion 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 EBullion with a short position of Bitcoin Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBullion and Bitcoin Well.
Diversification Opportunities for EBullion and Bitcoin Well
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EBullion and Bitcoin is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding EBullion and Bitcoin Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Well and EBullion 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 EBullion 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 EBullion i.e., EBullion and Bitcoin Well go up and down completely randomly.
Pair Corralation between EBullion and Bitcoin Well
If you would invest 6.58 in Bitcoin Well on August 25, 2024 and sell it today you would earn a total of 9.42 from holding Bitcoin Well or generate 143.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
EBullion vs. Bitcoin Well
Performance |
| Timeline |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bitcoin Well |
EBullion and Bitcoin Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBullion and Bitcoin Well
The main advantage of trading using opposite EBullion and Bitcoin Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBullion 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.| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion vs. Blockmate Ventures |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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