Correlation Between NYSE Composite and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and STKD Bitcoin Gold, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and STKD Bitcoin.
Diversification Opportunities for NYSE Composite and STKD Bitcoin
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and STKD is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and STKD Bitcoin go up and down completely randomly.
Pair Corralation between NYSE Composite and STKD Bitcoin
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the STKD Bitcoin. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 8.38 times less risky than STKD Bitcoin. The index trades about -0.11 of its potential returns per unit of risk. The STKD Bitcoin Gold is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,661 in STKD Bitcoin Gold on September 18, 2024 and sell it today you would earn a total of 404.00 from holding STKD Bitcoin Gold or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. STKD Bitcoin Gold
Performance |
| Timeline |
NYSE Composite and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
STKD Bitcoin Gold
Pair trading matchups for STKD Bitcoin
Pair Trading with NYSE Composite and STKD Bitcoin
The main advantage of trading using opposite NYSE Composite and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Cracker Barrel Old | NYSE Composite vs. Shake Shack | NYSE Composite vs. Integral Ad Science |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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