Correlation Between WhiteBIT Token and Gas
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and Gas 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 Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and Gas, you can compare the effects of market volatilities on WhiteBIT Token and Gas 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 Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and Gas.
Diversification Opportunities for WhiteBIT Token and Gas
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WhiteBIT and Gas is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gas 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 Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gas has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and Gas go up and down completely randomly.
Pair Corralation between WhiteBIT Token and Gas
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 1.05 times less return on investment than Gas. But when comparing it to its historical volatility, WhiteBIT Token is 2.11 times less risky than Gas. It trades about 0.49 of its potential returns per unit of risk. Gas is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 405.00 in Gas on August 27, 2024 and sell it today you would earn a total of 114.00 from holding Gas or generate 28.15% 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. Gas
Performance |
| Timeline |
| WhiteBIT Token |
| Gas |
WhiteBIT Token and Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and Gas
The main advantage of trading using opposite WhiteBIT Token and Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, Gas 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 Gas will offset losses from the drop in Gas' long position.| WhiteBIT Token vs. Staked Ether | WhiteBIT Token vs. EigenLayer | WhiteBIT Token vs. EOSDAC | WhiteBIT Token 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |