Correlation Between Wrapped Bitcoin and Storj
Can any of the company-specific risk be diversified away by investing in both Wrapped Bitcoin and Storj 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 Storj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wrapped Bitcoin and Storj, you can compare the effects of market volatilities on Wrapped Bitcoin and Storj 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 Storj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wrapped Bitcoin and Storj.
Diversification Opportunities for Wrapped Bitcoin and Storj
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wrapped and Storj is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Wrapped Bitcoin and Storj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storj 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 Storj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storj has no effect on the direction of Wrapped Bitcoin i.e., Wrapped Bitcoin and Storj go up and down completely randomly.
Pair Corralation between Wrapped Bitcoin and Storj
Assuming the 90 days trading horizon Wrapped Bitcoin is expected to generate 0.82 times more return on investment than Storj. However, Wrapped Bitcoin is 1.21 times less risky than Storj. It trades about 0.37 of its potential returns per unit of risk. Storj is currently generating about 0.17 per unit of risk. If you would invest 7,262,186 in Wrapped Bitcoin on August 27, 2024 and sell it today you would earn a total of 2,490,854 from holding Wrapped Bitcoin or generate 34.3% 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. Storj
Performance |
| Timeline |
| Wrapped Bitcoin |
| Storj |
Wrapped Bitcoin and Storj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wrapped Bitcoin and Storj
The main advantage of trading using opposite Wrapped Bitcoin and Storj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wrapped Bitcoin position performs unexpectedly, Storj 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 Storj will offset losses from the drop in Storj'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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