Correlation Between Eshallgo and BTC Digital
Can any of the company-specific risk be diversified away by investing in both Eshallgo and BTC Digital 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 Eshallgo and BTC Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eshallgo Class A and BTC Digital, you can compare the effects of market volatilities on Eshallgo and BTC Digital 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 Eshallgo with a short position of BTC Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and BTC Digital.
Diversification Opportunities for Eshallgo and BTC Digital
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eshallgo and BTC is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and BTC Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Digital and Eshallgo 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 Eshallgo Class A are associated (or correlated) with BTC Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Digital has no effect on the direction of Eshallgo i.e., Eshallgo and BTC Digital go up and down completely randomly.
Pair Corralation between Eshallgo and BTC Digital
Given the investment horizon of 90 days Eshallgo is expected to generate 6.33 times less return on investment than BTC Digital. But when comparing it to its historical volatility, Eshallgo Class A is 8.61 times less risky than BTC Digital. It trades about 0.4 of its potential returns per unit of risk. BTC Digital is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 161.00 in BTC Digital on August 24, 2024 and sell it today you would earn a total of 1,624 from holding BTC Digital or generate 1008.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. BTC Digital
Performance |
| Timeline |
| Eshallgo Class A |
| BTC Digital |
Eshallgo and BTC Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and BTC Digital
The main advantage of trading using opposite Eshallgo and BTC Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, BTC Digital 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 BTC Digital will offset losses from the drop in BTC Digital's long position.| Eshallgo vs. Shake Shack | Eshallgo vs. Lululemon Athletica | Eshallgo vs. Playtika Holding Corp | Eshallgo vs. Haverty Furniture Companies |
| BTC Digital vs. Lifevantage | BTC Digital vs. Balchem | BTC Digital vs. Western Acquisition Ventures | BTC Digital vs. CF Industries Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |