Correlation Between WhiteBIT Token and Coinbase Wrapped
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and Coinbase Wrapped 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 Coinbase Wrapped into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and Coinbase Wrapped Staked, you can compare the effects of market volatilities on WhiteBIT Token and Coinbase Wrapped 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 Coinbase Wrapped. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and Coinbase Wrapped.
Diversification Opportunities for WhiteBIT Token and Coinbase Wrapped
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WhiteBIT and Coinbase is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and Coinbase Wrapped Staked in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Wrapped Staked 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 Coinbase Wrapped. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Wrapped Staked has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and Coinbase Wrapped go up and down completely randomly.
Pair Corralation between WhiteBIT Token and Coinbase Wrapped
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 5.28 times less return on investment than Coinbase Wrapped. But when comparing it to its historical volatility, WhiteBIT Token is 18.88 times less risky than Coinbase Wrapped. It trades about 0.23 of its potential returns per unit of risk. Coinbase Wrapped Staked is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Coinbase Wrapped Staked on August 27, 2024 and sell it today you would earn a total of 367,569 from holding Coinbase Wrapped Staked or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 45.15% |
| Values | Daily Returns |
WhiteBIT Token vs. Coinbase Wrapped Staked
Performance |
| Timeline |
| WhiteBIT Token |
| Coinbase Wrapped Staked |
WhiteBIT Token and Coinbase Wrapped Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and Coinbase Wrapped
The main advantage of trading using opposite WhiteBIT Token and Coinbase Wrapped positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, Coinbase Wrapped 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 Coinbase Wrapped will offset losses from the drop in Coinbase Wrapped's long position.| WhiteBIT Token vs. Staked Ether | WhiteBIT Token vs. EigenLayer | WhiteBIT Token vs. EOSDAC | WhiteBIT Token vs. BLZ |
| Coinbase Wrapped vs. Staked Ether | Coinbase Wrapped vs. EigenLayer | Coinbase Wrapped vs. EOSDAC | Coinbase Wrapped vs. BLZ |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |