Correlation Between GreenBank Capital and BitFrontier Capital
Can any of the company-specific risk be diversified away by investing in both GreenBank Capital and BitFrontier Capital 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 GreenBank Capital and BitFrontier Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenBank Capital and BitFrontier Capital Holdings, you can compare the effects of market volatilities on GreenBank Capital and BitFrontier Capital 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 GreenBank Capital with a short position of BitFrontier Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenBank Capital and BitFrontier Capital.
Diversification Opportunities for GreenBank Capital and BitFrontier Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GreenBank and BitFrontier is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GreenBank Capital and BitFrontier Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFrontier Capital and GreenBank Capital 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 GreenBank Capital are associated (or correlated) with BitFrontier Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFrontier Capital has no effect on the direction of GreenBank Capital i.e., GreenBank Capital and BitFrontier Capital go up and down completely randomly.
Pair Corralation between GreenBank Capital and BitFrontier Capital
Assuming the 90 days horizon GreenBank Capital is expected to generate 6.2 times more return on investment than BitFrontier Capital. However, GreenBank Capital is 6.2 times more volatile than BitFrontier Capital Holdings. It trades about 0.12 of its potential returns per unit of risk. BitFrontier Capital Holdings is currently generating about 0.03 per unit of risk. If you would invest 9.04 in GreenBank Capital on August 30, 2024 and sell it today you would lose (8.17) from holding GreenBank Capital or give up 90.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GreenBank Capital vs. BitFrontier Capital Holdings
Performance |
| Timeline |
| GreenBank Capital |
| BitFrontier Capital |
GreenBank Capital and BitFrontier Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenBank Capital and BitFrontier Capital
The main advantage of trading using opposite GreenBank Capital and BitFrontier Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenBank Capital position performs unexpectedly, BitFrontier Capital 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 BitFrontier Capital will offset losses from the drop in BitFrontier Capital's long position.| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
| BitFrontier Capital vs. XTRA Bitcoin | BitFrontier Capital vs. Coin Citadel | BitFrontier Capital vs. Dmg Blockchain Solutions | BitFrontier Capital vs. Argo Blockchain PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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