Correlation Between Neptune Digital and BitFrontier Capital
Can any of the company-specific risk be diversified away by investing in both Neptune Digital 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 Neptune Digital and BitFrontier Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neptune Digital Assets and BitFrontier Capital Holdings, you can compare the effects of market volatilities on Neptune Digital 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 Neptune Digital with a short position of BitFrontier Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neptune Digital and BitFrontier Capital.
Diversification Opportunities for Neptune Digital and BitFrontier Capital
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neptune and BitFrontier is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Neptune Digital Assets and BitFrontier Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFrontier Capital and Neptune Digital 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 Neptune Digital Assets 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 Neptune Digital i.e., Neptune Digital and BitFrontier Capital go up and down completely randomly.
Pair Corralation between Neptune Digital and BitFrontier Capital
Assuming the 90 days horizon Neptune Digital Assets is expected to generate 1.03 times more return on investment than BitFrontier Capital. However, Neptune Digital is 1.03 times more volatile than BitFrontier Capital Holdings. It trades about 0.39 of its potential returns per unit of risk. BitFrontier Capital Holdings is currently generating about 0.06 per unit of risk. If you would invest 74.00 in Neptune Digital Assets on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Neptune Digital Assets or generate 135.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neptune Digital Assets vs. BitFrontier Capital Holdings
Performance |
| Timeline |
| Neptune Digital Assets |
| BitFrontier Capital |
Neptune Digital and BitFrontier Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neptune Digital and BitFrontier Capital
The main advantage of trading using opposite Neptune Digital and BitFrontier Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neptune Digital 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.| Neptune Digital vs. Cathedra Bitcoin | Neptune Digital vs. BLOK Technologies | Neptune Digital vs. iMining Blockchain and | Neptune Digital vs. DeFi Technologies |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |