Correlation Between GreenBank Capital and First BITCoin
Can any of the company-specific risk be diversified away by investing in both GreenBank Capital 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 GreenBank Capital and First BITCoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenBank Capital and First BITCoin Capital, you can compare the effects of market volatilities on GreenBank Capital 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 GreenBank Capital with a short position of First BITCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenBank Capital and First BITCoin.
Diversification Opportunities for GreenBank Capital and First BITCoin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GreenBank and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GreenBank Capital 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 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 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 GreenBank Capital i.e., GreenBank Capital and First BITCoin go up and down completely randomly.
Pair Corralation between GreenBank Capital and First BITCoin
Assuming the 90 days horizon GreenBank Capital is expected to generate 3.43 times more return on investment than First BITCoin. However, GreenBank Capital is 3.43 times more volatile than First BITCoin Capital. It trades about 0.13 of its potential returns per unit of risk. First BITCoin Capital is currently generating about 0.03 per unit of risk. If you would invest 0.31 in GreenBank Capital on September 1, 2024 and sell it today you would earn a total of 0.56 from holding GreenBank Capital or generate 180.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenBank Capital vs. First BITCoin Capital
Performance |
| Timeline |
| GreenBank Capital |
| First BITCoin Capital |
GreenBank Capital and First BITCoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenBank Capital and First BITCoin
The main advantage of trading using opposite GreenBank Capital and First BITCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenBank Capital 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.| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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