Correlation Between Bank Central and Athena Bitcoin
Can any of the company-specific risk be diversified away by investing in both Bank Central and Athena 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 Bank Central and Athena Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Athena Bitcoin Global, you can compare the effects of market volatilities on Bank Central and Athena 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 Bank Central with a short position of Athena Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Athena Bitcoin.
Diversification Opportunities for Bank Central and Athena Bitcoin
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Athena is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Athena Bitcoin Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Bitcoin Global and Bank Central 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 Bank Central Asia are associated (or correlated) with Athena Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Bitcoin Global has no effect on the direction of Bank Central i.e., Bank Central and Athena Bitcoin go up and down completely randomly.
Pair Corralation between Bank Central and Athena Bitcoin
Assuming the 90 days horizon Bank Central is expected to generate 38.37 times less return on investment than Athena Bitcoin. But when comparing it to its historical volatility, Bank Central Asia is 10.69 times less risky than Athena Bitcoin. It trades about 0.02 of its potential returns per unit of risk. Athena Bitcoin Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Athena Bitcoin Global on September 1, 2024 and sell it today you would lose (4.50) from holding Athena Bitcoin Global or give up 32.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bank Central Asia vs. Athena Bitcoin Global
Performance |
| Timeline |
| Bank Central Asia |
| Athena Bitcoin Global |
Bank Central and Athena Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Athena Bitcoin
The main advantage of trading using opposite Bank Central and Athena Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Athena 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 Athena Bitcoin will offset losses from the drop in Athena Bitcoin's long position.| Bank Central vs. Bank Mandiri Persero | Bank Central vs. Piraeus Bank SA | Bank Central vs. Kasikornbank Public Co | Bank Central vs. Turkiye Garanti Bankasi |
| Athena Bitcoin vs. Argo Blockchain PLC | Athena Bitcoin vs. Dmg Blockchain Solutions | Athena Bitcoin vs. Arcane Crypto AB | Athena Bitcoin vs. SPENN Technology AS |
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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