Correlation Between Signal Advance and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both Signal Advance and Grayscale 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 Signal Advance and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signal Advance and Grayscale Bitcoin Cash, you can compare the effects of market volatilities on Signal Advance and Grayscale 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 Signal Advance with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signal Advance and Grayscale Bitcoin.
Diversification Opportunities for Signal Advance and Grayscale Bitcoin
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Signal and Grayscale is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Signal Advance and Grayscale Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Cash and Signal Advance 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 Signal Advance are associated (or correlated) with Grayscale Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Bitcoin Cash has no effect on the direction of Signal Advance i.e., Signal Advance and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between Signal Advance and Grayscale Bitcoin
Given the investment horizon of 90 days Signal Advance is expected to generate 2.26 times more return on investment than Grayscale Bitcoin. However, Signal Advance is 2.26 times more volatile than Grayscale Bitcoin Cash. It trades about 0.22 of its potential returns per unit of risk. Grayscale Bitcoin Cash is currently generating about -0.17 per unit of risk. If you would invest 7.80 in Signal Advance on November 7, 2024 and sell it today you would earn a total of 20.20 from holding Signal Advance or generate 258.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Signal Advance vs. Grayscale Bitcoin Cash
Performance |
| Timeline |
| Signal Advance |
| Grayscale Bitcoin Cash |
Signal Advance and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signal Advance and Grayscale Bitcoin
The main advantage of trading using opposite Signal Advance and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signal Advance position performs unexpectedly, Grayscale 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 Grayscale Bitcoin will offset losses from the drop in Grayscale Bitcoin's long position.| Signal Advance vs. ESCO Technologies | Signal Advance vs. Know Labs | Signal Advance vs. Focus Universal | Signal Advance vs. Sono Tek Corp |
| Grayscale Bitcoin vs. Grayscale Litecoin Trust | Grayscale Bitcoin vs. Grayscale Digital Large | Grayscale Bitcoin vs. Bitwise 10 Crypto | Grayscale 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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