Correlation Between WhiteBIT Token and OKT Chain
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and OKT Chain 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 OKT Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and OKT Chain, you can compare the effects of market volatilities on WhiteBIT Token and OKT Chain 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 OKT Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and OKT Chain.
Diversification Opportunities for WhiteBIT Token and OKT Chain
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WhiteBIT and OKT is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and OKT Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OKT Chain 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 OKT Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OKT Chain has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and OKT Chain go up and down completely randomly.
Pair Corralation between WhiteBIT Token and OKT Chain
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 2.9 times less return on investment than OKT Chain. But when comparing it to its historical volatility, WhiteBIT Token is 5.94 times less risky than OKT Chain. It trades about 0.49 of its potential returns per unit of risk. OKT Chain is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 718.00 in OKT Chain on August 27, 2024 and sell it today you would earn a total of 529.00 from holding OKT Chain or generate 73.68% 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. OKT Chain
Performance |
| Timeline |
| WhiteBIT Token |
| OKT Chain |
WhiteBIT Token and OKT Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and OKT Chain
The main advantage of trading using opposite WhiteBIT Token and OKT Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, OKT Chain 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 OKT Chain will offset losses from the drop in OKT Chain's 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |