Correlation Between PT Bank and Osprey Bitcoin
Can any of the company-specific risk be diversified away by investing in both PT Bank and Osprey 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 PT Bank and Osprey Bitcoin 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 Osprey Bitcoin Trust, you can compare the effects of market volatilities on PT Bank and Osprey 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 PT Bank with a short position of Osprey Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Osprey Bitcoin.
Diversification Opportunities for PT Bank and Osprey Bitcoin
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PBCRF and Osprey is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Osprey Bitcoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osprey Bitcoin Trust 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 Osprey Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osprey Bitcoin Trust has no effect on the direction of PT Bank i.e., PT Bank and Osprey Bitcoin go up and down completely randomly.
Pair Corralation between PT Bank and Osprey Bitcoin
Assuming the 90 days horizon PT Bank is expected to generate 13.22 times less return on investment than Osprey Bitcoin. In addition to that, PT Bank is 1.12 times more volatile than Osprey Bitcoin Trust. It trades about 0.02 of its total potential returns per unit of risk. Osprey Bitcoin Trust is currently generating about 0.26 per unit of volatility. If you would invest 1,849 in Osprey Bitcoin Trust on September 2, 2024 and sell it today you would earn a total of 1,171 from holding Osprey Bitcoin Trust or generate 63.33% 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. Osprey Bitcoin Trust
Performance |
| Timeline |
| PT Bank Central |
| Osprey Bitcoin Trust |
PT Bank and Osprey Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Osprey Bitcoin
The main advantage of trading using opposite PT Bank and Osprey Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Osprey 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 Osprey Bitcoin will offset losses from the drop in Osprey Bitcoin's long position.| PT Bank vs. Commercial International Bank | PT Bank vs. Caixabank SA ADR | PT Bank vs. Bank Rakyat | PT Bank vs. Lloyds Banking Group |
| Osprey Bitcoin vs. Grayscale Bitcoin Cash | Osprey Bitcoin vs. Grayscale Litecoin Trust | Osprey Bitcoin vs. Grayscale Digital Large | Osprey Bitcoin vs. Grayscale Ethereum Trust |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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