Correlation Between Bitcoin Well and EBullion

Can any of the company-specific risk be diversified away by investing in both Bitcoin Well and EBullion 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 Bitcoin Well and EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitcoin Well and EBullion, you can compare the effects of market volatilities on Bitcoin Well and EBullion 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 Bitcoin Well with a short position of EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Well and EBullion.

Diversification Opportunities for Bitcoin Well and EBullion

0.0

Correlation Coefficient

Bitcoin Well  EBullion

Pay attention - limited upside

The 3 months correlation between Bitcoin and EBullion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Well and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion and Bitcoin Well 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 Bitcoin Well are associated (or correlated) with EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of Bitcoin Well i.e., Bitcoin Well and EBullion go up and down completely randomly.

Pair Corralation between Bitcoin Well and EBullion

If you would invest  12.00  in Bitcoin Well on December 30, 2024 and sell it today you would lose (3.00) from holding Bitcoin Well or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bitcoin Well  vs.  EBullion

Bitcoin Well

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitcoin Well has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bitcoin Well is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

EBullion

Risk-Adjusted Performance

Very Weak

Over the last 90 days EBullion has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, EBullion is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bitcoin Well and EBullion

The main advantage of trading using opposite Bitcoin Well and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Well position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.

The idea behind Bitcoin Well and EBullion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.