Correlation Between NSAV Holding and XTRA Bitcoin
Can any of the company-specific risk be diversified away by investing in both NSAV Holding and XTRA 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 NSAV Holding and XTRA Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSAV Holding and XTRA Bitcoin, you can compare the effects of market volatilities on NSAV Holding and XTRA 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 NSAV Holding with a short position of XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSAV Holding and XTRA Bitcoin.
Diversification Opportunities for NSAV Holding and XTRA Bitcoin
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NSAV and XTRA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding NSAV Holding and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin and NSAV Holding 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 NSAV Holding are associated (or correlated) with XTRA Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRA Bitcoin has no effect on the direction of NSAV Holding i.e., NSAV Holding and XTRA Bitcoin go up and down completely randomly.
Pair Corralation between NSAV Holding and XTRA Bitcoin
Given the investment horizon of 90 days NSAV Holding is expected to generate 1.53 times more return on investment than XTRA Bitcoin. However, NSAV Holding is 1.53 times more volatile than XTRA Bitcoin. It trades about 0.04 of its potential returns per unit of risk. XTRA Bitcoin is currently generating about 0.04 per unit of risk. If you would invest 0.40 in NSAV Holding on September 3, 2024 and sell it today you would lose (0.33) from holding NSAV Holding or give up 82.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NSAV Holding vs. XTRA Bitcoin
Performance |
| Timeline |
| NSAV Holding |
| XTRA Bitcoin |
NSAV Holding and XTRA Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSAV Holding and XTRA Bitcoin
The main advantage of trading using opposite NSAV Holding and XTRA Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSAV Holding position performs unexpectedly, XTRA 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 XTRA Bitcoin will offset losses from the drop in XTRA Bitcoin's long position.| NSAV Holding vs. GiveMePower Corp | NSAV Holding vs. Axis Technologies Group | NSAV Holding vs. Vortex Brands Co | NSAV Holding vs. Sysorex |
| XTRA Bitcoin vs. Coin Citadel | XTRA Bitcoin vs. ICOA Inc | XTRA Bitcoin vs. NSAV Holding | XTRA Bitcoin vs. Lion Group Holding |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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