Correlation Between WhiteBIT Token and ABBC
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and ABBC 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 WhiteBIT Token and ABBC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and ABBC, you can compare the effects of market volatilities on WhiteBIT Token and ABBC 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 WhiteBIT Token with a short position of ABBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and ABBC.
Diversification Opportunities for WhiteBIT Token and ABBC
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WhiteBIT and ABBC is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and ABBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBC and WhiteBIT Token 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 WhiteBIT Token are associated (or correlated) with ABBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBC has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and ABBC go up and down completely randomly.
Pair Corralation between WhiteBIT Token and ABBC
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.04 times more return on investment than ABBC. However, WhiteBIT Token is 27.29 times less risky than ABBC. It trades about 0.21 of its potential returns per unit of risk. ABBC is currently generating about -0.01 per unit of risk. If you would invest 2,623 in WhiteBIT Token on November 9, 2024 and sell it today you would earn a total of 140.00 from holding WhiteBIT Token or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteBIT Token vs. ABBC
Performance |
| Timeline |
| WhiteBIT Token |
| ABBC |
WhiteBIT Token and ABBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and ABBC
The main advantage of trading using opposite WhiteBIT Token and ABBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, ABBC 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 ABBC will offset losses from the drop in ABBC's long position.| WhiteBIT Token vs. Staked Ether | WhiteBIT Token vs. Phala Network | WhiteBIT Token vs. EigenLayer | WhiteBIT Token vs. EOSDAC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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