Correlation Between OFX Group and XTRA Bitcoin
Can any of the company-specific risk be diversified away by investing in both OFX Group 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 OFX Group and XTRA Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFX Group Ltd and XTRA Bitcoin, you can compare the effects of market volatilities on OFX Group 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 OFX Group with a short position of XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and XTRA Bitcoin.
Diversification Opportunities for OFX Group and XTRA Bitcoin
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OFX and XTRA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin and OFX Group 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 OFX Group Ltd 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 OFX Group i.e., OFX Group and XTRA Bitcoin go up and down completely randomly.
Pair Corralation between OFX Group and XTRA Bitcoin
If you would invest 0.09 in XTRA Bitcoin on November 27, 2024 and sell it today you would earn a total of 0.01 from holding XTRA Bitcoin or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFX Group Ltd vs. XTRA Bitcoin
Performance |
| Timeline |
| OFX Group |
| XTRA Bitcoin |
OFX Group and XTRA Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and XTRA Bitcoin
The main advantage of trading using opposite OFX Group and XTRA Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group 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.| OFX Group vs. Alternative Investment | OFX Group vs. Luxfer Holdings PLC | OFX Group vs. Freedom Holding Corp | OFX Group vs. NL Industries |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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