Correlation Between Wrapped Bitcoin and Ankr Network
Can any of the company-specific risk be diversified away by investing in both Wrapped Bitcoin and Ankr Network 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 Wrapped Bitcoin and Ankr Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wrapped Bitcoin and Ankr Network, you can compare the effects of market volatilities on Wrapped Bitcoin and Ankr Network 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 Wrapped Bitcoin with a short position of Ankr Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wrapped Bitcoin and Ankr Network.
Diversification Opportunities for Wrapped Bitcoin and Ankr Network
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wrapped and Ankr is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Wrapped Bitcoin and Ankr Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankr Network and Wrapped Bitcoin 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 Wrapped Bitcoin are associated (or correlated) with Ankr Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankr Network has no effect on the direction of Wrapped Bitcoin i.e., Wrapped Bitcoin and Ankr Network go up and down completely randomly.
Pair Corralation between Wrapped Bitcoin and Ankr Network
Assuming the 90 days trading horizon Wrapped Bitcoin is expected to generate 0.68 times more return on investment than Ankr Network. However, Wrapped Bitcoin is 1.47 times less risky than Ankr Network. It trades about 0.42 of its potential returns per unit of risk. Ankr Network is currently generating about 0.18 per unit of risk. If you would invest 6,805,450 in Wrapped Bitcoin on August 24, 2024 and sell it today you would earn a total of 3,044,135 from holding Wrapped Bitcoin or generate 44.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wrapped Bitcoin vs. Ankr Network
Performance |
| Timeline |
| Wrapped Bitcoin |
| Ankr Network |
Wrapped Bitcoin and Ankr Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wrapped Bitcoin and Ankr Network
The main advantage of trading using opposite Wrapped Bitcoin and Ankr Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wrapped Bitcoin position performs unexpectedly, Ankr Network 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 Ankr Network will offset losses from the drop in Ankr Network's long position.| Wrapped Bitcoin vs. Solana | Wrapped Bitcoin vs. XRP | Wrapped Bitcoin vs. Sui | Wrapped Bitcoin vs. Staked Ether |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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