Correlation Between Bank Negara and Athena Bitcoin
Can any of the company-specific risk be diversified away by investing in both Bank Negara 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 Negara 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 Negara Indonesia and Athena Bitcoin Global, you can compare the effects of market volatilities on Bank Negara 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 Negara with a short position of Athena Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Athena Bitcoin.
Diversification Opportunities for Bank Negara and Athena Bitcoin
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Athena is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia 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 Negara 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 Negara Indonesia 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 Negara i.e., Bank Negara and Athena Bitcoin go up and down completely randomly.
Pair Corralation between Bank Negara and Athena Bitcoin
Assuming the 90 days horizon Bank Negara Indonesia is expected to under-perform the Athena Bitcoin. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Negara Indonesia is 2.2 times less risky than Athena Bitcoin. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Athena Bitcoin Global is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6.20 in Athena Bitcoin Global on November 29, 2024 and sell it today you would lose (1.20) from holding Athena Bitcoin Global or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Athena Bitcoin Global
Performance |
| Timeline |
| Bank Negara Indonesia |
| Athena Bitcoin Global |
Bank Negara and Athena Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Athena Bitcoin
The main advantage of trading using opposite Bank Negara and Athena Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara 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 Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
| Athena Bitcoin vs. Argo Blockchain PLC | Athena Bitcoin vs. Dmg Blockchain Solutions | Athena Bitcoin vs. Arcane Crypto AB | Athena Bitcoin vs. OFX Group Ltd |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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