Correlation Between PT Bank and BTC Digital
Can any of the company-specific risk be diversified away by investing in both PT Bank and BTC Digital 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 PT Bank and BTC Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Central and BTC Digital, you can compare the effects of market volatilities on PT Bank and BTC Digital 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 PT Bank with a short position of BTC Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and BTC Digital.
Diversification Opportunities for PT Bank and BTC Digital
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PBCRF and BTC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and BTC Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Digital and PT Bank 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 PT Bank Central are associated (or correlated) with BTC Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Digital has no effect on the direction of PT Bank i.e., PT Bank and BTC Digital go up and down completely randomly.
Pair Corralation between PT Bank and BTC Digital
Assuming the 90 days horizon PT Bank Central is expected to under-perform the BTC Digital. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Bank Central is 16.98 times less risky than BTC Digital. The pink sheet trades about -0.01 of its potential returns per unit of risk. The BTC Digital is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 182.00 in BTC Digital on August 28, 2024 and sell it today you would earn a total of 1,350 from holding BTC Digital or generate 741.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. BTC Digital
Performance |
| Timeline |
| PT Bank Central |
| BTC Digital |
PT Bank and BTC Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and BTC Digital
The main advantage of trading using opposite PT Bank and BTC Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, BTC Digital 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 BTC Digital will offset losses from the drop in BTC Digital's long position.The idea behind PT Bank Central and BTC Digital 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.| BTC Digital vs. WT Offshore | BTC Digital vs. Avient Corp | BTC Digital vs. U Power Limited | BTC Digital vs. Thor Industries |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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