Correlation Between Freedom Day and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both Freedom Day 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 Freedom Day and STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Day Dividend and STKD Bitcoin Gold, you can compare the effects of market volatilities on Freedom Day 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 Freedom Day with a short position of STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Day and STKD Bitcoin.
Diversification Opportunities for Freedom Day and STKD Bitcoin
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Freedom and STKD is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Day Dividend 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 Freedom Day 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 Freedom Day Dividend 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 Freedom Day i.e., Freedom Day and STKD Bitcoin go up and down completely randomly.
Pair Corralation between Freedom Day and STKD Bitcoin
Given the investment horizon of 90 days Freedom Day is expected to generate 12.11 times less return on investment than STKD Bitcoin. But when comparing it to its historical volatility, Freedom Day Dividend is 4.37 times less risky than STKD Bitcoin. It trades about 0.06 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,130 in STKD Bitcoin Gold on October 26, 2024 and sell it today you would earn a total of 910.00 from holding STKD Bitcoin Gold or generate 42.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Freedom Day Dividend vs. STKD Bitcoin Gold
Performance |
| Timeline |
| Freedom Day Dividend |
| STKD Bitcoin Gold |
Freedom Day and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Day and STKD Bitcoin
The main advantage of trading using opposite Freedom Day and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Day 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.The idea behind Freedom Day Dividend and STKD Bitcoin Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STKD Bitcoin vs. Freedom Day Dividend | STKD Bitcoin vs. Franklin Templeton ETF | STKD Bitcoin vs. iShares MSCI China | STKD Bitcoin vs. Tidal Trust II |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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