Correlation Between IREIT MarketVector and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both IREIT MarketVector and STKD 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 IREIT MarketVector and STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iREIT MarketVector and STKD Bitcoin Gold, you can compare the effects of market volatilities on IREIT MarketVector and STKD 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 IREIT MarketVector with a short position of STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of IREIT MarketVector and STKD Bitcoin.
Diversification Opportunities for IREIT MarketVector and STKD Bitcoin
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IREIT and STKD is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding iREIT MarketVector and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold and IREIT MarketVector 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 iREIT MarketVector are associated (or correlated) with STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of IREIT MarketVector i.e., IREIT MarketVector and STKD Bitcoin go up and down completely randomly.
Pair Corralation between IREIT MarketVector and STKD Bitcoin
Given the investment horizon of 90 days IREIT MarketVector is expected to generate 7.32 times less return on investment than STKD Bitcoin. But when comparing it to its historical volatility, iREIT MarketVector is 2.58 times less risky than STKD Bitcoin. It trades about 0.05 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,785 in STKD Bitcoin Gold on November 3, 2024 and sell it today you would earn a total of 238.00 from holding STKD Bitcoin Gold or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
iREIT MarketVector vs. STKD Bitcoin Gold
Performance |
| Timeline |
| iREIT MarketVector |
| STKD Bitcoin Gold |
IREIT MarketVector and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IREIT MarketVector and STKD Bitcoin
The main advantage of trading using opposite IREIT MarketVector and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IREIT MarketVector position performs unexpectedly, STKD 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| IREIT MarketVector vs. Vert Global Sustainable | IREIT MarketVector vs. First Trust Exchange Traded | IREIT MarketVector vs. VanEck Mortgage REIT | IREIT MarketVector vs. Vanguard Global ex US |
| STKD Bitcoin vs. First Trust Multi Asset | STKD Bitcoin vs. Collaborative Investment Series | STKD Bitcoin vs. Northern Lights | STKD Bitcoin vs. Ocean Park International |
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 Positions Ratings module to 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.
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