Correlation Between WhiteBIT Token and Ethereum PoW
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and Ethereum PoW 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 Ethereum PoW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and Ethereum PoW, you can compare the effects of market volatilities on WhiteBIT Token and Ethereum PoW 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 Ethereum PoW. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and Ethereum PoW.
Diversification Opportunities for WhiteBIT Token and Ethereum PoW
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WhiteBIT and Ethereum is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and Ethereum PoW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethereum PoW 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 Ethereum PoW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethereum PoW has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and Ethereum PoW go up and down completely randomly.
Pair Corralation between WhiteBIT Token and Ethereum PoW
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.5 times more return on investment than Ethereum PoW. However, WhiteBIT Token is 2.01 times less risky than Ethereum PoW. It trades about 0.49 of its potential returns per unit of risk. Ethereum PoW is currently generating about 0.15 per unit of risk. If you would invest 1,903 in WhiteBIT Token on August 27, 2024 and sell it today you would earn a total of 560.00 from holding WhiteBIT Token or generate 29.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteBIT Token vs. Ethereum PoW
Performance |
| Timeline |
| WhiteBIT Token |
| Ethereum PoW |
WhiteBIT Token and Ethereum PoW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and Ethereum PoW
The main advantage of trading using opposite WhiteBIT Token and Ethereum PoW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, Ethereum PoW 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 Ethereum PoW will offset losses from the drop in Ethereum PoW's long position.| WhiteBIT Token vs. Staked Ether | WhiteBIT Token vs. EigenLayer | WhiteBIT Token vs. EOSDAC | WhiteBIT Token vs. BLZ |
| Ethereum PoW vs. Ethereum Classic | Ethereum PoW vs. Ethereum Name Service | Ethereum PoW vs. Staked Ether | Ethereum PoW vs. EigenLayer |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |